Will Wonga turn to longer loans business?

The controversial online money lending firm Wonga could be set to launch into the long term loans market. The company is testing out loans with current customers that can be repaid over a six- month period.

According to the Guardian, Wonga, which has come under fire for a range of issues, including allegedly advertising to children, said it started a pilot scheme six months ago.

The company is yet to disclose the rate of interest on longer term loans, or the amount which customers may borrow.

Its payday loans service currently offers loans of up to £1,500 at an interest rate equivalent to 5,388% APR.

The company and has also abandoned its PayLater service, which let customers pay for goods online using credit.

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