Wonga.com

[robert551069]

On TV last night it was stated that a loan of £100 at the highest rate would cost £516 after 30 days and £5100 after one year. This is equal to an APR rate of 4000% (Four thousand per cent)
I was surprised that to see that their advertisement is allowed on the Answerbank, Advertisement section

[NoMercy]

That kind of lending should be illegal. What kind of person can afford to repay over the£5k when they've had to go and borrow the paltry sum of £100 anyway?

£5,100 is 51 times the original loan. So you borrow £100 and then you pay them that amount back every week[i for an entire [i]year]!!!

How can that be legal?

[woofgang]

Its legal because they are absolutely up front about it. I would never ever do a wonga type loan (well except never name the well that you won't drink from) The use is intended to be for a few days to tide someone over.
Actually i don't think that they are as immoral as the life insurance sold to over fifties by the likes of Michael Parkinson...now that is a bad deal!

[friedgreentomato]

Going onto the Wonga website a £100 loan for 30 days would cost you £36.72 in interest.

Still high but there are desperate people out there that may see it as a help out.

[ojread2]

And desperate is the type of person they prey on

These ads make my blood boil - and Wonga is the cheapest of the lot

[starone]

At least they go into debt with their eyes open, unless they are so foolish that they don't read the small print or so untutored that they do not realise the implication of gathering interest.
Woofgang - I find those adverts regarding life insurance and featuring Michael Parkinson, June Whatsername, et al, very, very creepy and try not to watch them. If one comes on I turn off the sound. I suppose they have to make a living but eeeuch, in that way?

[Celticv11]

http://blog.moneysavi...illion-after-7-years/

[sandyRoe]

And that ménage á trois they use to advertise their usury is sending out the wrong signals about morality to our younger people.

[starone]

To be fair to Wonga, it must take quite an effort to get their money back from the people who borrow from them, after all you have to be pretty desperate to do so in the first place.

[douglas9401]

As we live through the results of the world existing on credit it's amazing how many people still just don't get it.
It seems that keeping up appearances is still more important than financial security.

[woofgang]

lol Sandy. I really really don't think that firms like wonga want to make customers out of the poor and desperate because that is bad business. They want easy money, people who borrow and pay back and don't cause them to spend any of their profit on recovering bad debt.

[RATTER15]

Woofgang, Im sure they make a lot more money out of customers who are bad at paying as they will be paying much more in return + recovery charges.