Controversial payday loans firm Wonga has written off a total of £220 m of debt owing from 330,000 customers after admitting making loans to people who were not in a position to repay them.
The much criticised company will also incur approximately £35 million worth of costs as it will not impose fees and charges related to around 45,000 customers.
The bold move, which comes after the regulator found Wonga had provided loans to some individuals after carrying out inadequate means checks, means that about 330,000 customers who are more than 30 days in arrears will have the remainder of their loan written off.
A staggering further 45,000 customers who are up to 29 days in arrears will be asked to repay their debt without interest and charges and will an additional option of paying off their debt over four months.
While the firm has not given an average amount for the level of debt held by those customers who will see their loans completely vanish, £220 million divided by 330,000 comes to £666.