[Theturnbull9]

Hi guys,

Just a quick thread just to get some of your opinions on this.

Wonga and these 'Pay Day Loan' companies, don't they exist just to prey on the most vulnerable who are already strapped for cash yet get into more debt by taking out a loan with these companies?.

How are they any different to loan sharks (Except for bringing the baseball bat around) charging 4000% on top of the initial loan yet they are still allowed to operate legally?

These companies may be helpful to some (having to pay bills etc - short term), but isn't it just another gateway for youngsters and other groups that are struggling for cash a 'quick fix' and an easy way out, but then just end up to their eye balls in debt due to not having any money in the first place..

Your opinions PLEASE!

Thankyou

[nase14_aldayz]

Yes it's bad, but whoever chooses to take a loan from them has to take accountability for their actions. Nobody is forcing them to take up their offers.

[PJ07]

(Original post by Theturnbull9)
Hi guys,

Just a quick thread just to get some of your opinions on this.

Wonga and these 'Pay Day Loan' companies, don't they exist just to prey on the most vulnerable who are already strapped for cash yet get into more debt by taking out a loan with these companies?.

How are they any different to loan sharks (Except for bringing the baseball bat around) charging 4000% on top of the initial loan yet they are still allowed to operate legally?

These companies may be helpful to some (having to pay bills etc - short term), but isn't it just another gateway for youngsters and other groups that are struggling for cash a 'quick fix' and an easy way out, but then just end up to their eye balls in debt due to not having any money in the first place..

Your opinions PLEASE!

Thankyou

It's a joke that they are legal to be honest.

While they offer a useful service the penalty rates are crazy and could be financially ruinous people.

If I'm not mistaken the legality of their practice is being looked into.

Hopefully they are heavily clamped down on.

[PJ07]

(Original post by nase14_aldayz)
Yes it's bad, but whoever chooses to take a loan from them has to take accountability for their actions. Nobody is forcing them to take up their offers.

No true, but they are also not exactly making the excessive penalties very clear to people.

Yes people should be thorough in checking everything out, but not everyone is capable and some vulnerable may be taken advantage of.

[nase14_aldayz]

(Original post by PJ07)
No true, but they are also not exactly making the excessive penalties very clear to people.

Yes people should be thorough in checking everything out, but not everyone is capable and some vulnerable may be taken advantage of.

I can't remember what website it was, but out of interest I went to see how it actually worked. It does make it clear, when you decide on how much you want to borrow, it calculates what you owe given a certain date.

Also the APR is always indicated at the bottom of the adverts.

People that vulnerable are exposed to all sorts.

*It was wonga.com

[Joe-89]

I don't see anything wrong with them at all.

It's not like they advertise that they're the go-to place for long term loans.

It's not even like they're hiding the fact that their APRs are astronomically high. The Wonga.com homepage displays this clearly and even has a slider thing that you can ajust according to how much you want to borrow and for how long which then displays how much you will pay back.

Not sure how much clearer they could make it...

[~Kat~]

I have a friend who's got into quite a lot of trouble with them lately. She's never been particularly of genius stock when it comes to money but I feel so sorry for her

[Brit_Miller]

I did it a few years ago with Wonga, took a £200 loan and lost my job the same week. That quickly esculated to £800 and now I'm balls deep in debt. But on the up side, I can't take any more loans or credit cards or even bank accounts and whenever I get a letter from the debt collection company they employed, I just file it in the bin.

[PJ07]

(Original post by nase14_aldayz)
I can't remember what website it was, but out of interest I went to see how it actually worked. It does make it clear, when you decide on how much you want to borrow, it calculates what you owe given a certain date.

Also the APR is always indicated at the bottom of the adverts.

People that vulnerable are exposed to all sorts.

*It was wonga.com

Fair enough, I remember it not being so clearly labelled when I checked, It was there yea but not jumping it out at you like it should be given its importance; but that was a good while ago. Maybe they've improved.

It's true vulnerable people are exposed to all sorts but it besides the point for me. The rates are clearly excessive, how hard would some regulation be to keep them in a less punitive rate. I mean there's no reason they shouldn't have penalty rates, but some of them are up around 4000% which simply isn't in anyway justifiable even if they do find people willing for some mad reason to sign up to it.

[Kibalchich]

(Original post by nase14_aldayz)
Yes it's bad, but whoever chooses to take a loan from them has to take accountability for their actions. Nobody is forcing them to take up their offers.

Some people are forced by circumstance.

[PJ07]

(Original post by Joe-89)
I don't see anything wrong with them at all.

It's not like they advertise that they're the go-to place for long term loans.

It's not even like they're hiding the fact that their APRs are astronomically high. The Wonga.com homepage displays this clearly and even has a slider thing that you can ajust according to how much you want to borrow and for how long which then displays how much you will pay back.

Not sure how much clearer they could make it...

It's like offering like offering a tainted hit of heroin to an addict, they'll probably take it but it should never have been offered and it'll probably be fatal.

People who are desperate are vulnerable, they'll out of desperation take it even knowing the rates are excessive and potentially catastrophic because they simply feel they have no option. Bottom line is the offer should not be made in the first place because it's a very dangerous offer, not everyone appreciates the risk of such loans.

[Miracle Day]

Was this inspired by Bianca off of Eastenders?

[Theturnbull9]

(Original post by Joe-89)
I don't see anything wrong with them at all.

It's not like they advertise that they're the go-to place for long term loans.

It's not even like they're hiding the fact that their APRs are astronomically high. The Wonga.com homepage displays this clearly and even has a slider thing that you can ajust according to how much you want to borrow and for how long which then displays how much you will pay back.

Not sure how much clearer they could make it...

Yes I agree they're not hiding the fact that their APR's are so high, but can it be said that everyone actually know's what APR is and how it effects the loan your taking out, I bet most people just disregard the APR and see the sliding bars select £50 for example then repayment of £65 on a certain date etc.

Also, I have to disagree with your first comment. Wonga advertise on the TV as a place to go for short term loans, they know for a fact that anyone wanting to take a short term loan out can't go anywhere else now due to the banks clamping down, who else is there to turn too.

Also, what about the people with drug and alcohol problems, its a quick injection of cash to feed there habit not thinking about the consequences.. I know it's a bit of the topic but I guess its pretty relevant.

Its just a debate hope I don't seem like I'm having a go haha!.

Thankyou for your response, It's really interesting to hear different points of view .

[whyumadtho]

(Original post by PJ07)
It's like offering like offering a tainted hit of heroin to an addict, they'll probably take it but it should never have been offered and it'll probably be fatal.

People who are desperate are vulnerable, they'll out of desperation take it even knowing the rates are excessive and potentially catastrophic because they simply feel they have no option. Bottom line is the offer should not be made in the first place because it's a very dangerous offer, not everyone appreciates the risk of such loans.

Without legal and safe means of acquiring money quickly, what do you expect people to do?

[kpwxx]

(Original post by Theturnbull9)
Hi guys,

Just a quick thread just to get some of your opinions on this.

Wonga and these 'Pay Day Loan' companies, don't they exist just to prey on the most vulnerable who are already strapped for cash yet get into more debt by taking out a loan with these companies?.

How are they any different to loan sharks (Except for bringing the baseball bat around) charging 4000% on top of the initial loan yet they are still allowed to operate legally?

These companies may be helpful to some (having to pay bills etc - short term), but isn't it just another gateway for youngsters and other groups that are struggling for cash a 'quick fix' and an easy way out, but then just end up to their eye balls in debt due to not having any money in the first place..

Your opinions PLEASE!

Thankyou

Yes, I agree with you. The idea of a payday loan in general is ridiculous- they make out like you might need the money to cover bills but generally bills are monthly as is pay, meaning you're going to be in the same situation next month except worse off by the amount of interest you paid.

But as people have said, taking Wonga.com as an example, they don't deceive. They make it clear. Is it irresponsible? Yes, I think so. But we are in a capitalist society which means people are allowed to have companies like this within reason.

I also think it's awful the way our society encourages borrowing for things people don't need. I know now, in the recession, a lot of people take these loans to survive. But a few years ago they were doing similar things to buy additional furniture, decorations, unneeded appliances etc and I think encouraging this was just as irresponsible.

Ok, rant over lol

xxx

[PJ07]

(Original post by whyumadtho)
Without legal and safe means of acquiring money quickly, what do you expect people to do?

The concept of the company is fine.

My point is that their penalty rates should be regulated and forced down to more reasonable rates.

Even something like 100-500% would be more understandable, still very high; but 4000% is simply crazy.

[Benniboi1]

I remember reading somewhere that if you borrowed £100 from one of these websites, eg wonga.com, that if you managed to evade paying it for 8 years then you would owe more money than the total GDP of all the countries on the planet.

Can't remember the specific's of it, but it was meant to be a 30 day small loan.

Craaazy

[PJ07]

(Original post by Benniboi1)
I remember reading somewhere that if you borrowed £100 from one of these websites, eg wonga.com, that if you managed to evade paying it for 8 years then you would owe more money than the total GDP of all the countries on the planet.

Can't remember the specific's of it, but it was meant to be a 30 day small loan.

Craaazy

That's my point, it's an irresponsible activity offering these loans.

[Joe-89]

(Original post by PJ07)
It's like offering like offering a tainted hit of heroin to an addict, they'll probably take it but it should never have been offered and it'll probably be fatal.

People who are desperate are vulnerable, they'll out of desperation take it even knowing the rates are excessive and potentially catastrophic because they simply feel they have no option. Bottom line is the offer should not be made in the first place because it's a very dangerous offer, not everyone appreciates the risk of such loans.

I'd say it is more like giving a (recovering) heroin addict an emergency supply of tainted methadone, which may have a few side effects, but will see them through until "payday" - their next prescribed supply of methadone.

I agree that they should maybe try harder to confirm that applicants will have the ability to repay their loans, but this can take time which would be be a bit counter-effective: these are meant to be quick emergency loans that are paid to you within minutes.

[Hopple]

(Original post by Theturnbull9)
Hi guys,

Just a quick thread just to get some of your opinions on this.

Wonga and these 'Pay Day Loan' companies, don't they exist just to prey on the most vulnerable who are already strapped for cash yet get into more debt by taking out a loan with these companies?.

How are they any different to loan sharks (Except for bringing the baseball bat around) charging 4000% on top of the initial loan yet they are still allowed to operate legally?

These companies may be helpful to some (having to pay bills etc - short term), but isn't it just another gateway for youngsters and other groups that are struggling for cash a 'quick fix' and an easy way out, but then just end up to their eye balls in debt due to not having any money in the first place..

Your opinions PLEASE!

Thankyou

I think the huge interest rate is justified in the short term, else they as a business are going to fail. However, I think after a month (or less) the interest rate should drop to the more normal rates.