Quick Quid.................

[hitony]

Just seen one of their adverts on telly, which prompted me to look at their web site, the APR goes as high as 2222.46%

Surely this must be bordering on legalised theft, and it is advertised on National TV

 

[Southstandfaithful]

WONGA's APR is even higher ......something like 2789%..... totally outrageous!

 

[Mendoza]

I'll see your Quick Quids 2222.46% and raise you a wonga.com 2689%

Wonga.com© Official Site - Short Term Cash Loans

 

[Common as Mook]

Small value loans, short term. That is an ANNUALISED interest rate.

 

[Sussex Nomad]

And to think Wonga were the TfL partner for free public transport on new years eve... no scruples.

 

[fire&skill]

I saw that as well and actually leant forward and squinted to see if the decimal point was hidden in between the numbers somewhere

 

[butchy]

its legalised loan sharking

 

[nwgull]

They have to show the annualised rate by law, 2600% only equates to about 35% per month which is still eye wateringly high but sounds about right for a short term, low value and relatively high risk payday type loan.

 

[Sussex Nomad]

They have to show the annualised rate by law, 2600% only equates to about 35% per month which is still eye wateringly high but sounds about right for a short term, low value and relatively high risk payday type loan.

Don't disagree with what you say NW, however these rip off loans aren't aimed at the well to do, but those desperate for a few quid to pay bills etc., and invariably they end up in more debt because of the experience. These 'loan sharks' just prey on the poor.

 

[beorhthelm]

the alternative is, they dont get any credit. who wants to lend £200 over a couple of days for a few pence? i believe the time the interest is added is limited to a month or so anyway.

 

[nwgull]

Don't disagree with what you say NW, however these rip off loans aren't aimed at the well to do, but those desperate for a few quid to pay bills etc., and invariably they end up in more debt because of the experience. These 'loan sharks' just prey on the poor.

Not much you can do though is there? If you made this type of lending illegal then it would just go underground, which would be even worse.

 

[Sussex Nomad]

I guess I just find local government pretty much giving it the green light by using them for local promotions a bit disgraceful.

 

[Wozza]

And to think Wonga were the TfL partner for free public transport on new years eve... no scruples.

Could well be CASH4GOLD next time.

 

[mcshane in the 79th]

I thankfully have never been in a position to need the use of companies such as this, so maybe I'm not best to comment, but surely there is no benefit to a 30 day loan? Once you've paid off your debts one month, you're going to have to double the amount the following month, but plus the interest and so much worse off in only 30 days. At least with a long term loan so can save a little each month towards paying it off but over such a short timescale I can't see how it's of any benefit whatsoever?

 

[Sussex Nomad]

They may possibly take on risk loans that banks and proper loan companies are unwilling to?

 

[beorhthelm]

I thankfully have never been in a position to need the use of companies such as this, so maybe I'm not best to comment, but surely there is no benefit to a 30 day loan?

thats not really the purpose of them, the idea is for a few days. ie, a bill comes out of account on 23rd, you get paid 26th. interest for a few days is probably less than unauthroised overdraft charges and its not a big black mark on credit rating.

 

[seagullsovergrimsby]

These loans are designed for people who get paid at the beginning of the month and then spend all their wages in the first week and then realise a direct debit is due and there isn't enough any money left in their account.

 

[turienzo's lovechild]

it's better than the alternative ie. illegal loan sharks

 

[Jim D]

If I lend a mate £20 on Saturday night and he pays it back next Saturday (no interest) but also buys me a pint (say £3) what rate of interest is that? It wouldn't surprise me to find out that sort of thing happens all the time, but nobody thinks anything of it.

 

[Easy 10]

Its for people living hand-to-mouth, and I hope I am never in that position.

I despise being in debt, and thankfully the only debt I will owe will be when I pay for my season ticket over 12 months. The last "loan" I took out was a 12 month interest-free HP on our suite, and I made sure that was fully paid off within the 12 months before they started lumping interest on.

I feel very sorry for people who are so desperate they have to resort to these loan shark companies for emergency cash, it must be horrendous.