Wonga on brink of collapse.

[Chippy_Tea]

They are owed 400 million by customers and they are not writing this offoas its an asset (in their words) for whoever buys them

 

[stan.distortion]

They are owed 400 million by customers and they are not writing this offoas its an asset (in their words) for whoever buys them

That's pretty much the way money works unfortunately, it comes into existence through loans by the banks and the loans are often packaged up and sold to the highest bidder (ex. mortgage backed securities). Money is debt and scum like Wonga are just the tip of the stinking iceberg.

 

[ACBEV]

..there's always the red hot pokers....

A few wonga's should be chopped off...

 

[BeerCat]

The Guardian has a different take on it https://www.theguardian.com/comment...fails-grateful-payday-lender-valuable-service

Thats the typical ***** i would expect from them. Valuable service my *****

 

[Slid]

OK here is a question for you - why do you blame the lender and not the borrower? Why do you not blame such family or friends that the borrower may have and yet blame the lender?

It said quite clearly at the end of an unwanted TV advert for "Quick Quid" "typical APR 1,291%". What part of that is there to not understand for those who undergo compulsory education to the age of 16?

 

[Chippy_Tea]

When people are desperate they want to keep the wolves from the door so I guess a 1000% interest rate is better than the alternative these loan sharks should not be able to pray on desperate people and the sooner they are stopped the better.

 

[MyQul]

OK here is a question for you - why do you blame the lender and not the borrower? Why do you not blame such family or friends that the borrower may have and yet blame the lender?

It said quite clearly at the end of an unwanted TV advert for "Quick Quid" "typical APR 1,291%". What part of that is there to not understand for those who undergo compulsory education to the age of 16?

As an accountant your accutely aware of interest rates and what a 1,291% APR is and what it means. I think most people who use these lenders (invariably the poorest in society) are financially illiterate and dont have the slightest clue what 1000%+
APR means. It could be lit up in neon lights and they still wouldnt understand it.
I have clients (people with learning disablities) who use these type of lenders and I've tried all kinds of way to illustrate how much money they are paying back on the initial loan. It's like trying to shoot a Panzer tank with a pea shooter. All they see is someone willing to give them some money on top of their benefits

 

[Slid]

I take no issue with what you say - it is entirely correct from any moral perspective.
But logically, may I ask the same question in a different way - what would happen if there were no "Pay Day Loan" organisations?

 

[Slid]

As an accountant your accutely aware of interest rates and what a 1,291% APR is and what it means. I think most people who use these lenders (invariably the poorest in society) are financially illiterate and dont have the slightest clue what 1000%+
APR means. It could be lit up in neon lights and they still wouldnt understand it.
I have clients (people with learning disablities) who use these type of lenders and I've tried all kinds of way to illustrate how much money they are paying back on the initial loan. It's like trying to shoot a Panzer tank with a pea shooter. All they see is someone willing to give them some money on top of their benefits

Ah, I like this answer. So a different way of asking the same question - "would the lives of your clients be improved by the removal of the Pay Day Loan facility altogether"?

 

[MyQul]

I take no issue with what you say - it is entirely correct from any moral perspective.
But logically, may I ask the same question in a different way - what would happen if there were no "Pay Day Loan" organisations?

Then people would either use loan sharks, go without food and/or go into debt to utility companies

 

[MyQul]

Ah, I like this answer. So a different way of asking the same question - "would the lives of your clients be improved by the removal of the Pay Day Loan facility altogether"?

Yes, specifically because of a different issue all together. My clients (and I'm only talking about my clients not anyones else than may be forced to use pay day loans) have adequate benefits, however because of our consumer society they want things that are beyond their means and use payday loan companies to get them

 

[Slid]

OK that is another good answer.

I think it is perhaps time I apologise for winding everyone up and for little reason other than to come to what may be the most obvious answer of all. "They want things that are beyond their means".
And that might include us all at certain times.

Sorry again, folks.

 

[MyQul]

OK that is another good answer.

I think it is perhaps time I apologise for winding everyone up and for little reason other than to come to what may be the most obvious answer of all. "They want things that are beyond their means".
And that might include us all at certain times.

Sorry again, folks.

I'm only speaking of my specific clients. There are many people who are forced to use thetse pay day loan companies just to make ends meet. We havent had the the massive proliferation of food banks in recent years just because people are spending there money on massive TV's

 

[Dutto]

A good mate of mine reckons that many understand the import of 1,200% APR but still borrow the money because they know that the 50 to 1 outsider running in the 2.15pm race at Lingfield will romp home a winner ...

... and they will pay the loan back the same afternoon!

 

[brumbrew]

My wife fell down the stairs last year. She caused significant damage to her C2 vertebrae. Something that usually has a very high fatality rate. (Bloody flip flops)

She was out of work for a good 6 months on basic sick pay.

It was a struggle to make ends meet. I have no real family I can rely on other than my dear old granny I can maybe pinch 20 quid off, or some provisions to make a meal.

My wife. Before I met her had used these thieves or at least the same ilk.

I refused to let this happen this time.

Debt can be bought for as little as 10p on the £ and debt collection agents will ramp up the costs exponentially.

I had a debt of about 100 to a utility firm, that an agent tried and failed to turn into almost 450 quid. What because you sent me a letter and knocked on my door ?

Pull the other one mate.

I paid the debt direct to the company and told the collection agency to bugger off (using nice terms)

It's my understanding that debt collection agents. Not high court bayliffs is what you see on programmes like 'can't pay well take it away' are being reviewed.

Ive heard stories of people owing 20 quid that gets turned into 200 just from a letter.

That said. If you enter into a contract with these terms in them...and sign it...it's you're own fault.

But this extortionate fee system needs to capped. and is why companies like wonga are now going bust.

I offered the agent that came to my house his petrol money and half his days wage. Plus what I owed.

No he wanted almost 4 times my debt plus fees.

You can probably guess what I told him.

I informed the company in writing that I had cleared the debt with the original debtor and I now have no business with them. (The agents)

Many companies have also been caught out sending fake letters to people threatening legal action from fake solicitors. A crime in itself. That's extortion!

So I'd just say. Be very careful who you do business with in regards to money and know your rights!

(Not a freeman of the land or any of that just not going to be bullied)

 

[Dutto]

I think anyone (including myself) who has seen hard times has had to make the terrible decision about owing someone so my advice is simple:

1. Do without if you can.
2. If you can't then owe the person who supplies the goods or services, not a Pay Day Loan company.
3. NEVER borrow money to pay off a debt!

The last one is critical. It's the one that leads people into the realms of 1,200% interest!

BTW - There's a Credit Union somewhere near you.

It's there to keep the young and people on low earnings out of the clutches of the Pay Day Lenders of this world.

I suggest that anyone on a low wage or with a youngster in the family starts an account with their local Credit Union, so that if hard times arrive they have somewhere that they can go and get a loan at a decent rate of interest.

For the more fortunate amongst us then please go and open an account and put some money into it so that others may benefit. You won't get a great deal of interest on your money, but you will be helping others!

 

[Chippy_Tea]

OK that is another good answer.

I think it is perhaps time I apologise for winding everyone up and for little reason other than to come to what may be the most obvious answer of all. "They want things that are beyond their means".
And that might include us all at certain times.

Sorry again, folks.

No need to apologise Slid it was a valid question and i agree with MyQul they would probably stop paying bills so that isn't the answer to the problem, i am not against pay day lending its the interest they charge that is the problem why cant they charge a fair interest rate instead of screwing the people at the bottom of the ladder.

.

 

[Clint]

Some great answers on a subject that does need exposing and properly explaining.
Fortunately I listened to my mam...If you can't afford it you can't have it.