Wonga's new chairman vows to clean up unfair lending practices

Andy Haste, a former executive of bluechip insurance companies, started his £500,000 a year job as Wonga chairman on Monday, with a statement that acknowledged that the company needed to change.

Co-founder Errol Damelin quit as chairman in June, just before the FCA ordered the payday lender to pay £2.6m in compensation for misleading customers over fake lawyers' letters. The regulator said Wonga had been guilty of 'unfair and misleading debt collection practices', and the Law Society has since called for a criminal investigation into the matter. Haste said the lender had not been contacted by police and that '[Wonga's] whole focus is working with our regulator to pay compensation to customers in a timely manner.'

Haste said:

"Wonga has understandably faced criticism and we know we need to repair our reputation and regain our right to be an accepted part of the financial service sector," he said. As well as sky-high interest rates, Wonga has been accused of using "cute puppets" and catchy tunes in adverts aired in prime-time children's TV slots to appeal to a young age group.

"The puppets are going and I think that is right. I am very aware of the criticism there has been of our advertising and marketing, which is one of my priorities to review. We will be reviewing how we go to market across the piste, not just on TV."