Letter to Grauniad re: Wonga

[Fef]

Maybe idiot was not the right word to use, but if you are in financial trouble, anyone with some common sense knows that a loan shark is not the answer...

So assuming that the banks refuse them a further loan, and their families and their friends can't (or won't) help, do tell ... what is the answer?

Edit: Not that I condone the activities of these sharks.

 

[Easy 10]

£30 to borrow £100 for 2-3 weeks is managable, but still sickeningly expensive.

Thats a night out gone up the swanny just for a brief tide-over.

 

[NickBHAFC18]

I have not been in that situation so I wouldn't know, but I know loan sharks wouldn't be the answer. It clearly states when applying for the loan the outcome if you can't pay it back, and the interest fee's etc. Its not hidden, or misleading, it tells you straight. Now I know that if I was in financial crisis, taking more "risks" would not benefit me.

It's people choice what they do, and just because people with financial trouble in the past have used it and come out worse, doesn't mean their a bad organisation. It's clearly advertised as a "short, quick PAYDAY loan" not "Financial troubles? click here we can solve your problems."

 

[Silent Bob]

Maybe idiot was not the right word to use, but if you are in financial trouble, anyone with some common sense knows that a loan shark is not the answer...

Yeah, you'd have to be ignorant or desperate to use them.

f*** the vunerable, that's what I say.

 

[ATFC Seagull]

I would imagine a lot of people here have suffered from overdraft charges and unpaid DD fees etc by banks? Often the interest rate (even if it is sometimes a straight fee rather than a percentage of borrowing) is much higher than some of these payday lenders. I would say they perpetuate debt a hell of a lot more. But we quite happily plaster their sponsorship everywhere in sports.

(Not a fan of wonga at all by the way...).

 

[Lord Bracknell]

Céline Graciet has written about the Albion in the past.

(Pour ceux qui vivent en angleterre) Help totalement off topic (French)

Quel match ? Quelle équipe ? Nov 17, 2003

Sans vouloir te démoraliser, la plupart des équipes de la Premier league ayant des milliers de personnes sur les listes d'attente pour obtenir des passes pour la saison (situation inimaginable en France, non ?), il est très difficile de trouver des billets, surtout pour les équipes les plus réputées. Même pour aller voir l'équipe de ma ville, Brighton & Hove Albion (division 3 !!), il faut connaître des "season ticket holders", sinon c'est même pas la peine d'essayer. Ils sont fous de foot les Anglais, c'est d'ailleurs en partie pourquoi je suis restée.

And this ...

Comme quoi il faut rester optimiste ! Nov 19, 2003

Heureusement que tout le monde n'est pas aussi pessimiste que moi ! Je n'avais pas pensé que ticketmaster pouvait se révéler une bonne option.

Il faut dire que j'ai gardé en travers ma petite épopée de l'année dernière où, voulant rendre service à quelqu'un de mon village natal, j'ai passé des heures à chercher deux billets pour aller voir MU à Old Trafford. Ça a été une galère d'enfer et j'y suis arrivé, mais les billets étaient complètement hors de prix (£80, faut pas pousser). Les prix sont vraiment scandaleux. Heureusement qu'à Brighton on a une très bonne équipe féminine en première division (entrée £1), sinon je n'irais jamais dans un stade de foot.

 

[Stat Brother]

True, but if you have any common sense, you know that if you are in debt already, a loan shark is not the option anyway. If I am having a really tight month, I borrow £100 every now and then, and pay back £130 as soon as I am paid 15/20 days later. It's simple, and yes it may attract people who are already in trouble, and it can cause them more, but that's what banks, family and friends are for.

I don't wish to pry but surely a £130 deficit from your wages, on pay day, is going to make managing the next 4 weeks even harder.

 

[Westdene Seagull]

I have not been in that situation so I wouldn't know, but I know loan sharks wouldn't be the answer. It clearly states when applying for the loan the outcome if you can't pay it back, and the interest fee's etc. Its not hidden, or misleading, it tells you straight. Now I know that if I was in financial crisis, taking more "risks" would not benefit me.

It's people choice what they do, and just because people with financial trouble in the past have used it and come out worse, doesn't mean their a bad organisation. It's clearly advertised as a "short, quick PAYDAY loan" not "Financial troubles? click here we can solve your problems."

The problem is their business model is to prey on the weak. YOU may have common sense ( although I'd have to question why you would wish to pay £30 to borrow £100 for less than a month - absolute rip off ) but many people see it as a last chance saloon. A get out of jail free card if you will. The true interest rates are always in the small print and to be frank are completely criminal. In many cases people would be better taking a DMP than borrowing from scum like Wonga.

 

[piersa]

True, but if you have any common sense, you know that if you are in debt already, a loan shark is not the option anyway. If I am having a really tight month, I borrow £100 every now and then, and pay back £130 as soon as I am paid 15/20 days later. It's simple, and yes it may attract people who are already in trouble, and it can cause them more, but that's what banks, family and friends are for.

i will happily lend you £100 if you pay me pack £125 two weeks later.

 

[piersa]

The problem is their business model is to prey on the weak. YOU may have common sense ( although I'd have to question why you would wish to pay £30 to borrow £100 for less than a month - absolute rip off ) but many people see it as a last chance saloon. A get out of jail free card if you will. The true interest rates are always in the small print and to be frank are completely criminal. In many cases people would be better taking a DMP than borrowing from scum like Wonga.

on the noggin.

 

[beorhthelm]

The problem is their business model is to prey on the weak. YOU may have common sense ( although I'd have to question why you would wish to pay £30 to borrow £100 for less than a month - absolute rip off ) but many people see it as a last chance saloon. A get out of jail free card if you will. The true interest rates are always in the small print and to be frank are completely criminal. In many cases people would be better taking a DMP than borrowing from scum like Wonga.

to be fair, their business model is to simply lend money to those that will repay it. from reading the CEO Wonga in particular isnt interested in the "weak" as you put it, but those that have good incomes and will pay it back. they all are really, poor payers are no good to them. and the interest rates and amount due are in large 16pt print. if we were to limit the interest rate to 50% the service wouldnt exist, as loaning £100 over 10 days for £2 isnt worth the administration.

 

[NickBHAFC18]

to be fair, their business model is to simply lend money to those that will repay it. from reading the CEO Wonga in particular isnt interested in the "weak" as you put it, but those that have good incomes and will pay it back. they all are really, poor payers are no good to them. and the interest rates and amount due are in large 16pt print. if we were to limit the interest rate to 50% the service wouldnt exist, as loaning £100 over 10 days for £2 isnt worth the administration.

Just to add to that as well, they do a credit check on you when you apply, and if your credit rating isn't good, you will be denied.

 

[Uncle Spielberg]

I have not been in that situation so I wouldn't know, but I know loan sharks wouldn't be the answer. It clearly states when applying for the loan the outcome if you can't pay it back, and the interest fee's etc. Its not hidden, or misleading, it tells you straight. Now I know that if I was in financial crisis, taking more "risks" would not benefit me.

It's people choice what they do, and just because people with financial trouble in the past have used it and come out worse, doesn't mean their a bad organisation. It's clearly advertised as a "short, quick PAYDAY loan" not "Financial troubles? click here we can solve your problems."

You have never been in a position so desperate so you are alright Jack. If people cannot feed their kids, what do they do ? What is your solution ? I think the interest rates are scandalous but they saw a business opportunity and a need and went for it. The booming industries in this country are now pawnbrokers, charity shops, pound shops and quick loan shops.

 

[D'Angelo Saxon]

"Chris Johnson Crewe Alexandra and Macclesfield Town supporter"

I'm more bothered that this guy appears to support two football clubs.

 

[Arthur]

I do allot of work with various pay day loans companies and trust me Wonga are one of the more reputable ones.

I assume said pinko twat will also be writing to Blackpool and insisting they pass up their six figure annual sponsorship deal on ethical grounds?

Come to think about it what are the interest rates for an Amex card? Pretty steep if memory recalls. Lets start a petition and get them away from our football club!! Lets ask Ipswich if we can borrow their banner!!?!?!

 

[NickBHAFC18]

You have never been in a position so desperate so you are alright Jack. If people cannot feed their kids, what do they do ? What is your solution ? I think the interest rates are scandalous but they saw a business opportunity and a need and went for it. The booming industries in this country are now pawnbrokers, charity shops, pound shops and quick loan shops.

I'm quite sure you can find professional help in situations like that, we're in the 21st century....your saying the government wont be able to help you..?

You say the less fortunate are attracted to it, but you can say that about many situations in many different industries. I have to get back to work now, but to sum it up, loan sharks are not for, or aimed at people without money. They want their money back, and want people who will pay it back. Yes it can attract people in financial trouble, but there are ALWAYS better options and ways to go about it.

 

[Pantani]

I do allot of work with various pay day loans companies and trust me Wonga are one of the more reputable ones.

I assume said pinko twat will also be writing to Blackpool and insisting they pass up their six figure annual sponsorship deal on ethical grounds?

Come to think about it what are the interest rates for an Amex card? Pretty steep if memory recalls. Lets start a petition and get them away from our football club!! Lets ask Ipswich if we can borrow their banner!!?!?!

American Express credit card 19.9% APR.
Wonga pay day loan 4214% APR.

Similar, in that Wonga rate is only 212 times more expensive.

 

[Pantani]

Incidently Wonga now have an advert at the top of NSC. I shall be writing a strongly worded letter to NSC LTD or whatever Bozza has called his company.

 

[Arthur]

American Express credit card 19.9% APR.
Wonga pay day loan 4214% APR.

Similar, in that Wonga rate is only 212 times more expensive.

Hmmmm yes but wonga will lend you 400 quid for a month or two, Amex £40k+ for as long as you like.

And what about their charge cards, what the APR on those if you don't pay them back?

Actually, it doesn't matter the point I'm trying to make is if you don't like a product then don't f***ing buy it! I have no desire to stay at a Holiday Inn (currently being advertised up top) so I won't bother clicking on the banner, should I be writing to a national newspaper or starting a petition?

 

[Diego Napier]

Hmmmm yes but wonga will lend you 400 quid for a month or two, Amex £40k+ for as long as you like.

And what about their charge cards, what the APR on those if you don't pay them back?

Actually, it doesn't matter the point I'm trying to make is if you don't like a product then don't f***ing buy it! I have no desire to stay at a Holiday Inn (currently being advertised up top) so I won't bother clicking on the banner, should I be writing to a national newspaper or starting a petition?

And you're missing the point; it's about being concerned for others and ensuring that vulnerable people are afforded some degree of protection from increasing their financial difficulties .

Those who are desperate or disadvantaged aren't going to take out an Amex card, they probably wouldn't be able to obtain one anyway.