Wonga.com

[robert551069]

I put a thread about exorbitant interest charges of four thousand percent by Wonga.co under the adverts section of Answerbank. If you are thinking of borrowing from them, please read my thread.

[ojread2]

I will never, ever, ever, ever understand why these companies are allowed to legally trade
For years loan sharks have operated charging exorbitant interest and no, *just because* they tell you the interest rate, they can trade legally?
Utter rubbish! There are rules in place for these companies, make sure you know them

[sinderella]

so if mrs A is desperate to borrow £20 does she go to wonga /whoever or does she go to the local loan shark who will take even more , lull her into borrowing even more and end up waiting at the post office taking half her benefits every week.i would personally never use them but some have a need

[Buenchico]

If a good friend of mine asked to borrow £100 for a week I'd expect to be repaid £120 in 7 days time. (Similarly, I'd expect to repay that amount if I was the one borrowing the money). I see nothing wrong with a commercial company offering the same type of deal.

[squarebear]

The rates are clearly laid out in the adverts. Anyone who borrows from such companies is well aware of their rates.

[Psybbo]

if a friend asks for a loan, I give it and write it off. If I get it back, that's a bonus

[Wharton]

sibton
ditto

[SpikeyBush]

Pay back on time and there is no issue. The high interest you pay is less than the penalty for not paying a particular bill on time. The problem escalates when you can't pay Wonga on time and end up paying interest and penalties on interest and penalties but I believe there was a court ruling this week capping the interest at 60 days on such loans where the customer is having trouble making payments. But still, 60 days at a billion per cent is still a lot of money.

[MASS1961]

Wonga seems to be the worst of a bad bunch of short term loan companies. Most lend at 1700+% over 28-31 days - £100 = £125 paid back
Wonga lend at 4200+% over 15 days - £100 = £119.50 paid back.

If you can't afford £100 now, what chance of having £119.50 in 2 weeks when you get paid and still have to live for the rest of the week/month.

I think they are deplorable, preying on gullible people.

[hc4361]

What is your answer to the problem then, Massi?
The days of getting 'tick' at the grocers, the butchers and the pub are long gone.
Banks won't lend them money - it is not worth their while for such small amounts, and the vast majority have very poor credit history.

I suppose there is still the loan shark that takes the child benefit books as payment, or uses violence to get his money.

The APR is a nonsense statistic for this type of loan. It is supposed to be a small loan for a few days, not a large loan over years.

These are very high risk borrowers - prime targets for the sharks. Wonga and its ilk are preferable.

[DaisyNonna]

Sick yo death of being told I have a poor credit history because In have not borrowed anything.

[MASS1961]

hc461.

I have had no credit cards, loans, debts for the past 3 years and only have what I can afford to pay for from what I earn and save up for.
I was bankrupt prior to this but no longer have or wish to have credit.
People nowadays want things immediately and are not willing to save.

I agree APR is a nonsense with this type of loan as they won't loan for long periods.
Wonga and the like are "legal" loan sharks as they publish their rates but at the end of the day, the money still needs repaying!!

[Hopkirk]

I like their adverts though.

[hc4361]

Well good for you Mass, but as you have been in financial difficulties in the past you must have an idea of what it must be like for somebody to be desperate for a few quid to feed the kids or other essentials.

For example, a worker could be suddenly laid off and not get their wages or redundancy for a few weeks. It takes a while for benefits to come through.

[MASS1961]

The number of these companies popping up over the last couple of years makes me think of vultures circling over a almost dead, credit ridden, desperate country (not everybody I know, just some very vulnerable people).

I understand your analogy hc461, but is that the way to go? How can somebody afford to pay 25% more than they borrow after only 30 days?
The credit culture nowadays is frightening. It is so easy to get. Only yesterday, I was driving home and was cut up by a lad, no more than 19 driving a car that would have cost approx £20k or 36 easy payments of £250! I saved up years ago to buy my first 2nd/3rd hand car for £700.

Also Hopkirk, I hate the adverts, simply for what they stand for.

[hc4361]

That lad could have been driving a company car, or he may have won the lottery.

[vindi48]

The answer is simple DaisyNonna. You don't have a bad credit rating - you don't have a rating at all. Borrow a small amount from your bank for no purpose than repay it the following week. Your sickness will end - and you'll have a great credit rating.

[ojread2]

hc, I've been up to my neck in it in debt but there was no way I was ever going to go to a loan shark - they were called their proper name when I was 'desperate'.
If I couldn't make a payment, I called the persons/company and told them, if they wanted to chase me for money I didn't have, so be it, but, as Massi says, if I couldn't afford it on Monday, then why can I afford it on Friday 2 weeks later?
Yes, it's one of the worst situations I have ever been through but NEVER, would I have borrowed money form anyone like Wonga and their ilk.

And just how do you think someone is going to be able to borrow enough from Wonga et al and pay it back out of benefits?!

[lankeela]

I have used Wonga a couple of times when unexpected expenses such as a vet bill have cropped up and payday is still a couple of weeks away. With credit cards maxed out and a poor credit history they are the only ones who will lend me a few quid right when I need it. Pay back on payday and no worries. I would definitely recommend them.

[boxtops]

Lankeela, that's an interesting perspective from someone who's used them to your advantage, not to theirs. It's the people who can't pay back on payday who get into difficulties.

[EDDIE51]

every vet I have heard of is willing to take payment in instalmets. I once had to take my dog to the vet and could not pay until the end of the month. I explained to the vet and they were happy to give me a bill and wait for payment until the end of the month. The only time I would consider Wonga or other payday loans is if it was the onky way to avoid bank charges (£38 for going £1 overdrawn for 5 days)