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[News] Wonga - on verge of collapse.



larus

Well-known member
Couldn’t happen to a nicer company. Wish the same fate on the whole ‘pay-day’ lender crowd.

I know people struggle and need ‘help’, but these type of parasitic companies don’t give that help. Interest rates of circa 1,000% APR. I’ve never understood why this had not been more closely regulated - I’m all for free markets, but not at the expense of the vulnerable.

What the solution is I don’t know - but if it’s companies like Wonga then society is screwed badly.
 




dazzer6666

Well-known member
NSC Patreon
Mar 27, 2013
52,005
Burgess Hill
Couldn’t happen to a nicer company. Wish the same fate on the whole ‘pay-day’ lender crowd.

I know people struggle and need ‘help’, but these type of parasitic companies don’t give that help. Interest rates of circa 1,000% APR. I’ve never understood why this had not been more closely regulated - I’m all for free markets, but not at the expense of the vulnerable.

What the solution is I don’t know - but if it’s companies like Wonga then society is screwed badly.

Good news. Profiting from the vulnerable or stupid.
 








Beach Hut

Brighton Bhuna Boy
Jul 5, 2003
71,903
Living In a Box
Didn't they sponsor Newcastle not that long ago ?
 




Official Old Man

Uckfield Seagull
Aug 27, 2011
8,486
Brighton
The problem with Wonga is that there was a desperate market waiting for them to pounce. Right company, right place, right time. They arrived just as the banks shut up shop. Wonga started to offer loans of £500, the sort of amount that the bank would allow as an overdraft until the crackdown. People needed this small amount to 'tide them over' until pay day. They would offer the £500 at £25 week except that it would never be paid back as the interest was higher than the amount being paid back!
Personally I'd line up all the directors and lock them away for life.
 






Creaky

Well-known member
Mar 26, 2013
3,834
Hookwood - Nr Horley
Silly question but . . . If the interest rates that Wonga charge, considering the market they are lending to, are outrageous then why are they in financial difficulties?
 


dazzer6666

Well-known member
NSC Patreon
Mar 27, 2013
52,005
Burgess Hill




Creaky

Well-known member
Mar 26, 2013
3,834
Hookwood - Nr Horley
Probably because most of the people they are lending to now can’t pay anything back......and claims management companies killing them for compo claims

https://www.theguardian.com/busines...-payday-lender-wonga-on-the-brink-of-collapse

Which really was my point - considering the market they are lending to and the high likelihood of default are the rates they charge that outrageous?

Aren’t credit card companies and banks that charge 20/30% interest rates to those with excellent credit ratings profiteering even more?
 


dazzer6666

Well-known member
NSC Patreon
Mar 27, 2013
52,005
Burgess Hill
Which really was my point - considering the market they are lending to and the high likelihood of default are the rates they charge that outrageous?

Aren’t credit card companies and banks that charge 20/30% interest rates to those with excellent credit ratings profiteering even more?

Tricky one.....no-one is forced to borrow from them, so if they are 100% clear about their rates, repayments and consequences for non-repayment then it shouldn’t be a problem. I suspect they have sailed a bit close to the edge on their terms and conditions
 


Jul 7, 2003
8,571
Aren’t credit card companies and banks that charge 20/30% interest rates to those with excellent credit ratings profiteering even more?

I agree that those rates are very high in comparison to other loans and savings. Of course, the argument is that if you can't afford it then you shouldn't use them but I'm sure most on here have had to resort to cards at some point in their life to get out of a hole - things like domestic appliances packing in when least expected / convenient.


Obviously you should always try to pay off the cards as soon as possible but if you do find yourself building up a credit card bill then banks will usually be happy to convert into a loan which is usually at a much lower APR than the credit card company are charging.
 




Lindfield23

Well-known member
Dec 14, 2016
762
Best news I've heard for a while - hope the detestable vultures that profited off the desperation of this company's customers lose every single penny, whilst their pathetic business, along with the opportunity to extract more money from some of the UK's most vulnerable citizens, goes down the sh*tter:O
 


Iggle Piggle

Well-known member
Sep 3, 2010
5,281
Whilst I shed no tears that Wonga is going bust, It does beg the question -
what is the middle ground between Jezza bankrupting the country giving stuff away for free and desperate people defaulting on unaffordable loans?

Can't say I know the answer.
 


Feb 9, 2011
1,047
Lancing
Disgusting company. My grandson being young and stupid borrowed money, so easy couple of clicks on his phone. To cut long story short eventually I rang them gave them my card number to clear debt. Month later they took another payment out of my account, rang again asking why and was told you only cleared the money borrowed not the interest. Anyway cancelled card and have never heard from them since.


Sent from my iPad using Tapatalk
 


Guy Fawkes

The voice of treason
Sep 29, 2007
8,187
Silly question but . . . If the interest rates that Wonga charge, considering the market they are lending to, are outrageous then why are they in financial difficulties?

Maybe this article wasn't so far from the truth after all
http://newsthump.com/2015/04/21/won...r-accidentally-borrowing-a-fiver-from-itself/

Disgusting company. My grandson being young and stupid borrowed money, so easy couple of clicks on his phone. To cut long story short eventually I rang them gave them my card number to clear debt. Month later they took another payment out of my account, rang again asking why and was told you only cleared the money borrowed not the interest. Anyway cancelled card and have never heard from them since.


Sent from my iPad using Tapatalk

Maybe they only repaid the money borrowed and not the interest on their own loan too which has caused this potential collapse?
 






maffew

Well-known member
Dec 10, 2003
8,859
Worcester England
Good news thread. Got a vulnerable friend who ended up in a right mess with a Street pawn shop. They would buy his CDs off him for more than they could be sold knowing he would be back in and out every 2 weeks selling them back to him and so it went on. God knows how many times he bought his cd player. Just in a ridiculous cycle. I ended up taking his stuff and giving it him back bit by interest free. I know it sounds stupid but he was quite unwell and coming good now
 



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