WONGA

#1
Off today and watching the mid morning ads. The usual:
Claims ads were people celebrate a £10K payout by cutting their own fringe
Cilla Black selling insurance
Ads for women who p1ss themselves on beaches
Insurance ads with rodents and Italian pr1cks
BUT Wonga takes the biscuit! Yes you can borrow money from Wonga.........at an APR of Typical 2689%
Honestly would anyone on here borrow at that rate? Oh and the incentive? The less time you borrow over the higher the rate!
 
#3
Just like the Cnuts who want to buy any old gold, the BBC did a program on it and they were offered £60 pound an ounce, when its over $900 an ounce on the gold markets
 
#4
Its normally a short term loan until the end of the month, for example borrow 100 quid the weekend before payday, then pay back 120 quid a few days later, quite a few squaddies us it (or similar schemes).
 

the_boy_syrup

LE
Book Reviewer
#5
tropper66 said:
Just like the Cnuts who want to buy any old gold, the BBC did a program on it and they were offered £60 pound an ounce, when its over $900 an ounce on the gold markets
Was the Seller a man in his 50's with an eysight problem and Scottish accent?
 
#6
the_boy_syrup said:
tropper66 said:
Just like the Cnuts who want to buy any old gold, the BBC did a program on it and they were offered £60 pound an ounce, when its over $900 an ounce on the gold markets
Was the Seller a man in his 50's with an eysight problem and Scottish accent?
No it was that Dominic bloke off The One Show, oh I'm Welsh by the way, I only have a Scotish name
 
#8
stacker1 said:
Its normally a short term loan until the end of the month, for example borrow 100 quid the weekend before payday, then pay back 120 quid a few days later, quite a few squaddies us it (or similar schemes).
Yeah, they're a "payday loan" company. The APRs look horrific because they lend tiny sums over very short periods (borrowing £70 for a week, WTF?) - their admin costs aren't much less than conventional loan companies, but they also have to make a profit. So they charge five or six quid to borrow £70 for a fortnight which works out as an eye-watering APR (can't be arrsed to do the sums, I'm only a taxman).

Hell of an expensive way to borrow money though - anyone using one of these companies should sit themselves down and give themselves a good talking to. Have you no friends or family?


It's also become a huge political issue in the States due to the large number of US service personnel who use these types of company and find themselves in serious financial trouble because of it.
 
#9
Blogg said:
I think the term we are looking for here is Usury.
What have bears got to do with it? :?
 
#11
Tax_Tw-t said:
It's also become a huge political issue in the States due to the large number of US service personnel who use these types of company and find themselves in serious financial trouble because of it.
Most of the squaddies I know that use it are normally young and just out of (or still in) phase 2 training. Do you want to stay in a poxy shitty camp for a weekend or do you want to see you family/civvies friends for the price of 13 quid (borrowing 100 quid for 7 days)? No contest there.

Wonga I notice automatically take the money back on payday so no-one should ever have a problem with defaulting for short term loans. They also cap the lending at 400 quid.
 
#13
stacker1 said:
Tax_Tw-t said:
It's also become a huge political issue in the States due to the large number of US service personnel who use these types of company and find themselves in serious financial trouble because of it.
Most of the squaddies I know that use it are normally young and just out of (or still in) phase 2 training. Do you want to stay in a poxy shitty camp for a weekend or do you want to see you family/civvies friends for the price of 13 quid (borrowing 100 quid for 7 days)? No contest there.

Wonga I notice automatically take the money back on payday so no-one should ever have a problem with defaulting for short term loans. They also cap the lending at 400 quid.
Overdraft?
 
#14
DarkNinja said:
Off today and watching the mid morning ads. The usual:
Claims ads were people celebrate a £10K payout by cutting their own fringe
Cilla Black selling insurance
Ads for women who p1ss themselves on beaches
Insurance ads with rodents and Italian pr1cks
BUT Wonga takes the biscuit! Yes you can borrow money from Wonga.........at an APR of Typical 2689%
Honestly would anyone on here borrow at that rate? Oh and the incentive? The less time you borrow over the higher the rate!
my bold: yes & they do 8O

I remember one of the consumer advice programmes covering both these legal loan sharks as well as the gold adverts been advertised on tv & its simply a case there's a market out there then use & exploit it,

i have to admit though, that 2689% APR really does take the pi$$ especially as consumer personnel debt in the UK is the highest its been for years & these type of companies will just increase that element.
 
#15
DarkNinja said:
Overdraft?
They don't have one or are already using it.
If the day before payday you go overdrawn at most banks by 10 quid (without permission) you get a hit with a charge of 35 quid, which is a lot more than what Wonga are charging.
 
#16
stacker1 said:
DarkNinja said:
Overdraft?
They don't have one or are already using it.
If the day before payday you go overdrawn at most banks by 10 quid (without permission) you get a hit with a charge of 35 quid, which is a lot more than what Wonga are charging.
Indeed, they do have their uses. Provided it's a one-off and the lender is responsible and don't pester you to take out ever more money then I guess it's the lesser of two evils.
The problem comes when you (as Blogg says) become addicted to them and they don't actually get paid off at the time, but get extended.

Probably a better way to do it would be to have a fixed, legally limited standardised admin charge (a few quid) for all loans of this type, then limit the actual APR to 30% or less.
 
#17
Or borrow off a mate?
 
#18
What,s wrong with going to the SSVC on the 20th to buy a BETAMAX video recorder on credit and selling it at the end of the month for 50 DM for a night on the piss :?
 
#19
Tax_Tw-t said:
Indeed, they do have their uses. Provided it's a one-off and the lender is responsible and don't pester you to take out ever more money then I guess it's the lesser of two evils.
The problem comes when you (as Blogg says) become addicted to them and they don't actually get paid off at the time, but get extended.

Probably a better way to do it would be to have a fixed, legally limited standardised admin charge (a few quid) for all loans of this type, then limit the actual APR to 30% or less.
Why? We complain about the Nanny state enough, do people really need to be protected from borrowing a hundred quid for a week for a 13 quid charge?
 
A

ALVIN

Guest
#20
The most educational signal that this sort of thing sends out to society is that it is definitely a mad world that we live in!
 

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