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.

[factor-fiction]

I agree with SpikeyBush. The APR figure is accurate but it's a bit misleading so long as the loan is repaid within a short period. For real one-off emergency loans where there will be enough funds to repay it on time it isn't the worst way of borrowing the money. It's better than using unregulated illegal loan sharks.
But I agree that it's usually the start of a slippery slope and may be luring people into debt. I get annoyed with ads showing smiling people with a new gadget they've bought using such a loan.

[Old_Geezer]

I find the excuse of these companies that you'd be prepared to pay more in real terms to your mate at the pub for a short term loan, somewhat offensive, as it treats folk like idiots who will swallow anything. As far as I am aware Wonga and all the others don't borrow on exorbitant rates from their customers the following week as 'the other side of the coin'.

The use of the Mr. Sandman song was inspired though.

[factor-fiction]

I bet the default rate is quite high though, O-G

[Old_Geezer]

Possibly but I'm unconvinced that is an excuse to take advantage of the desperate. Not all countries allow this abuse of their citizens, and I'm unsure mine should either.

If the default rate coupled with an acceptable interest rate isn't viable then the business isn't viable. We have a Welfare State as a safety net for folk, how come a case can be made for this sort of thing at all ?