wonga.com

[the sicilian]

Just seen an advert for something called wonga.com who offer small short term loans... on screen they state an apr of 2689%  lol... ffs that should be illegal

[DaveShoelace]

Yep, I think they should get shut down for having a name that only appeals to fuckwits that are clearly going to get themselves into trouble.

[gatso]

we've done this one before. think the general concensus was it's fine. long term loans at those aprs obv bad, short term what do you expect them to do? make 10pence on each customer?

you don't have to take the loan, they're completely upfront about the deal, the loans are short term so the interest payment is only ever a small amount

[ScottMGee]

you don't have to take the loan, they're completely upfront about the deal, the loans are short term so the interest payment is only ever a small amount

Very true BUT they are lending to muppets with no money. Come repayment time a large proportion of the borrowers will not the money to repay the loan and will have to roll it over. If you do this enough times the loan gets very big very quickly.

You borrow £100 and roll it over for 5 months you end up owing £500!

[gatso]

it can't rollover for 5 months, that's not how they work

as soon as you're late their collection team is on it, interest only accrues for 60 days, they will probs then pass it onto a collection agency so the uberhigh interest will stop

[DMorgan]

But as Canada Bill Jones said, "It's immoral to let a sucker keep his money."

[ScottMGee]

it can't rollover for 5 months, that's not how they work

as soon as you're late their collection team is on it, interest only accrues for 60 days, they will probs then pass it onto a collection agency so the uberhigh interest will stop

The people who use this service are living pay day to pay day, hence when they come to repay the initial £100 loan they will then be £120 short that month, hence they then borrow £120 effectively rolling over the loan.

[the sicilian]

it can't rollover for 5 months, that's not how they work

as soon as you're late their collection team is on it, interest only accrues for 60 days, they will probs then pass it onto a collection agency so the uberhigh interest will stop

Yeah then the collection agency bung £250 on top...talk about never ending circle