The Archbishop of Canterbury Justin Welby will bring investors and charities together in Lambeth Palace next week to support more than 200,000 borrowers who have a hard time repaying their debts
The Church of England must make a rescue attempt to pay £ 400 million in loans from collapsed lender Wonga.
The Archbishop of Canterbury Justin Welby will bring together investors and charities next week at Lambeth Palace to support more than 200,000 borrowers who are struggling when they are forced to repay their debts.
It comes on the advice of MP Frank Field, who wrote to the archbishop and urged the church to buy the loan book from the obsolete lender, using a portion of the £ 7 billion in assets.
The move may be an attempt to save the face after the questionable CofE investments were revealed by the Daily Mail.
On Thursday Archbishop Welby was faced with hypocrisy after it became clear that the church had invested heavily in Amazon, despite the fact that the prelate accused the company of excluding the taxpayer & # 39 ;.
The church was forced to defend its controversial investment yesterday, thought to be more than £ 10 million, claiming that it gave her a voice to lobby for change as a shareholder.
It had previously been shown that the CofE had embarrassing ties with Wonga.
Archbishop Welby complained in 2013 about the high interest rates of the company and called for & # 39; out of existence & # 39; to compete by supporting credit unions.
But one day later it turned out that the Church of England had invested in one of the company's main financiers, making it an indirect investment in Wonga itself. After the collapse of the lender – who at one point charged the interest of the customers to 5,853 percent up to the limit of 1,500 percent – the managers said they would consider all the rescue proposals.
Last week, Mr Field, the chairman of the Committee on Work and Pensions of the House of Commons, wrote in a letter to the archbishop: "The Wonga loan book will be sold and if the past report is a guideline for the future, they will be sold at a low price. . Within these loan books there are one that I presume are exclusively dedicated to the exploitation of the poor.
& # 39; Is there a possibility from you to quickly ask the church commissioners to collect a consortium of good people with money, who will try to buy the loan books of those poor people at a price for surrender? & # 39;
It is thought that the commissioners might try to set up a rescue consortium instead of investing their assets directly to help Wonga victims.