Am I the only person totally unimpressed with these adverts ? Has anyone, been so impressed with their "sliders" that they've borrowed money from them ?
not at 2394% apr mate, you borrow money to get through the week then the end of the week you are down again to repay wonga so you borrow more and so it begins.. there only fine if you know you have extra income that will cover the cost of the loan.
I'm pretty sure the image they portray of nice middle class families using it for 'those months where the money just won't stretch' couldn't be further from the truth. It may sound judgemental but I'm pretty sure those stupid enough to use it are unemployed/on benefits/already snowed under in debt and the company and others are exploiting that. Quite how so many of them have been allowed to spring up and continue operating is beyond me.
Sorry just reread that. If it looks like I'm looking down at my nose at those struggling with money, I'm not at all. Just saying the companies know full well the kind of people that will be attracted to their loans and interest rates so high they should be illegal. Just because they have nice friendly looking adds on tv doesn't mean they are any better than a loan shark you meet down the pub.
I'm pretty sure the image they portray of nice middle class families using it for 'those months where the money just won't stretch' couldn't be further from the truth. It may sound judgemental but I'm pretty sure those stupid enough to use it are unemployed/on benefits/already snowed under in debt and the company and others are exploiting that. Quite how so many of them have been allowed to spring up and continue operating is beyond me.
I used them many moons ago. Majority of them you have to be in employment and prove it, but the snowed under in debt bit is correct. Can quickly spiral into a mess.
If you were going on a Cumbrian promotion weekender but were not paid till next week, is it really bad to borrow a 100quid and pay it back next week? What is the amount you would have to pay back for that sort of timeframe/amount?
If only a tenner then who cares - only looks bad if you work out that tenner interest as A.P.R over a year.
It is sad that Blackpool are perfectly happy to have Wonga as their shirt sponsor. Is that really a "service" they want to be selling to their supporters?
If you were going on a Cumbrian promotion weekender but were not paid till next week, is it really bad to borrow a 100quid and pay it back next week? What is the amount you would have to pay back for that sort of timeframe/amount?
If only a tenner then who cares - only looks bad if you work out that tenner interest as A.P.R over a year.
£13. Yep that's Wonga's argument as well ie APR is not appropriate for measuring short term loans.
Saw a great program (think it was a Dispatches, could have been a Panorama). It seems some people end up paying off their loans with loans from other companies and it spirals out of control very very quickly. The APR argument is a bit of a red herring mind, all credit companies are legally obliged to publish the APR, but in the case of these companies, you will never see the APR materialise because no-one holds a loan off them for a year...
Just seen that the OS has a Wonga advert on it. I take it that the club has no say whatsoever on the standards/ethics of the adverts on the site. I certainly find it rather depressing that the FLI (or whatever it's called) has sanctioned promotional material from a company that provides such a toxic product. What next - a cheap holiday offer from the North Korea Tourist Board?
It's a tricky one to be sure and I agree with a lot of the sentiment already expressed about some of these pay day loan companies exploiting vulnerable people but stop for a mo' and consider the alternatives.
The banks and other mainstream lenders won't lend to them full stop because they have little equity to secure the loan and in all probability are already a high risk borrower. The APR of short term deals is ALWAYS significantly distorted and also reflects the higher rate of default btw.
The alternative is to pawn something (probably the best source of short term finance) or borrow some cash from a loanshark (undoubtedly the worst).
At the very least the wonga's of this world are regulated and there is an opportunity to start gaining some positive credit history if they are used properly and sensible.
If you open up the debate about whether a company is a suitable sponsor or not then there's a can of worms right there - what about the sportwears companies use of child labour to produce those replica shirts that we all seem so keen on for instance? What about the behaviour of certain financial institutions during the credit crunch who behaved attrociously but still are seen on the front of shirts every weekend?
At the very least the wonga's of this world are regulated
Ahh, there's the rub. They've got a consumer credit licence issued by the OFT for sure. But the OFT makes the FSA look good. Just about anybody can get a CCL by applying on-line and paying the fee - a pathetic £1,215. I'll leave you to guess how much regulatory oversight just over a grand buys. And if the OFT do investigate a firm's activities, what's the likely sanction? They lose their CCL. Big deal - just get some cleanskin to apply for a new one under a different business name.
Most of the regulatory role around the 'Wongas' is actually carried out by the local authority actually and will be increasingly so in the future now the plug's been pulled on the OFT.
Thankfully all LA's are all massively over funded and overstaffed so you'll no doubt see a huge improvement in the regulation of the CC Act. ;-)
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:-)
however if you are using it to suppliment your income its a false economy
What is the amount you would have to pay back for that sort of timeframe/amount?
If only a tenner then who cares - only looks bad if you work out that tenner interest as A.P.R over a year.
Very true. I mean, just look at all those fecking horrible fizzy drinks that are turning our kids into toothless hyperactive fat feckers!
The APR argument is a bit of a red herring mind, all credit companies are legally obliged to publish the APR, but in the case of these companies, you will never see the APR materialise because no-one holds a loan off them for a year...
The banks and other mainstream lenders won't lend to them full stop because they have little equity to secure the loan and in all probability are already a high risk borrower. The APR of short term deals is ALWAYS significantly distorted and also reflects the higher rate of default btw.
The alternative is to pawn something (probably the best source of short term finance) or borrow some cash from a loanshark (undoubtedly the worst).
At the very least the wonga's of this world are regulated and there is an opportunity to start gaining some positive credit history if they are used properly and sensible.
If you open up the debate about whether a company is a suitable sponsor or not then there's a can of worms right there - what about the sportwears companies use of child labour to produce those replica shirts that we all seem so keen on for instance? What about the behaviour of certain financial institutions during the credit crunch who behaved attrociously but still are seen on the front of shirts every weekend?
Thankfully all LA's are all massively over funded and overstaffed so you'll no doubt see a huge improvement in the regulation of the CC Act. ;-)