[News] Wonga - on verge of collapse.

[larus]

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.

 

[seagullsslimjim]

I may lend them a grand at 1,450% APR !

 

[dazzer6666]

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.

 

[Binney on acid]

Fantastic news!

 

[GT49er]

I may lend them a grand at 1,450% APR !

I'd be happy with a tenth of that percentage, bearing in mind the pitiful amounts the banks are offering these days, even on ISAs!

 

[Beach Hut]

Didn't they sponsor Newcastle not that long ago ?

 

[larus]

I'd be happy with a tenth of that percentage, bearing in mind the pitiful amounts the banks are offering these days, even on ISAs!

Even 1/100th would be huge in todays markets

 

[Official Old Man]

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.

 

[Leekbrookgull]

Fantastic news!

Totally agree.

 

[Creaky]

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]

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?

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

 

[Creaky]

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]

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

 

[thedonkeycentrehalf]

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]

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

 

[Iggle Piggle]

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.

 

[Bill Cassidy's tie up]

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]

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?

 

[Albion my Albion]

Good news. Profiting from the vulnerable or stupid.

Reminds me of Donald Trump.

 

[maffew]

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