Wonga is a horrible little site

[Jacko93]

They're advertised like that to cover themselves. They would barely be profitable if they didn't trap a certain percentage of their customers.

Cover themselves how? If somebody said to me, "Take a loan out with me, its great, but I recognise you are high risk, and will charge you a bit more than the normal market rate for that fact" I wouldn't see it as them covering themselves, I'd see it as a warning.

 

[Foot Long Hot Dog]

I'm not making assumptions or saying I have an idea on other peoples lives, but I am saying that if you dont use things in the way that they are intended, then they have a tendency to bite you in the arse. If you are unable to keep up repayments on things, then you have to consider getting rid of them. If you live in a rented flat, and the repayments become unsustainable, then move to somewhere cheaper. If you have a mobile phone contract, try to renegotiate of you can. If you have sky, change your package, or get rid entirely. Broadband, get rid, use the library computers. Problem I see is that SOME people feel they have right to live in a certain way, you dont, nobody is entitled to anything more than warmth, food water and a roof over their head, everything else can be considered a luxury. If you can aford it, buy it, if you cant, dont.

I said earlier on in the thread, there are some actually destitute people out there, and i wouldn't begrude or remove ANY help for them that is available, in fact, I would encourage more, but the majority of people can help themselves. I am not in the slightest bit rich, not even close, but by living within my means, I am comfortable.

There's a wider debate there, which is the whole culture of 'buy today pay tomorrow', that we've lived with since the 80's, when the idea of delayed gratification, became a thing of the past.

However, I think that across the spectrum of lenders then these payday loans companies are as low as you can get. As despite your comments about using their 'service' correctly & living within your means etc, these companies prey on those who don't have that level of discipline & become entwined in a cycle of debt that sees them paying out a chunk of their disposable income every month just to feed the interest for an item or a bill that they originally borrowed to fund months or even years prior.

You can say that it's their own fault for becoming trapped in it & ultimately it is, but that doesn't excuse the companies who set their stall out to attract & then milk, people who are at the lower end of the earnings pyramid, with interest rate levels that are nothing short of obscene. It's fundamentally wrong & has been incorrectly legitimised by our society imo.

 

[Jacko93]

There's a wider debate there, which is the whole culture of 'buy today pay tomorrow', that we've lived with since the 80's, when the idea of delayed gratification, became a thing of the past.

However, I think that across the spectrum of lenders then these payday loans companies are as low as you can get. As despite your comments about using their 'service' correctly & living within your means etc, these companies prey on those who don't have that level of discipline & become entwined in a cycle of debt that sees them paying out a chunk of their disposable income every month just to feed the interest for an item or a bill that they originally borrowed to fund months or even years prior.

You can say that it's their own fault for becoming trapped in it & ultimately it is, but that doesn't excuse the companies who set their stall out to attract & then milk, people who are at the lower end of the earnings pyramid, with interest rate levels that are nothing short of obscene. It's fundamentally wrong & has been incorrectly legitimised by our society imo.

I agree with a lot of what you have put here. However, Just as an example, my sister works at the job center. Now i have no idea who on here works or doesn't work, but many wont be aware of the availability of a govt interest free loan (actually, hardly a loan, cause they wouldn't have to pay it back) that used to be a fund for jobseekers. They essentially had a fund of £1200 for emergencies. My sister would sit in with some of these people and they would be in weekly and monthly to 'draw' from their emergency fund up until the entirety had been spent. If she refused it, they claimed that she can not keep them from their "entitlement" and that they need the money to repair a washing macine etc. So she started offering them a washing machine, or cooker and free removal of the broken one. Almost everytime they refused this option, why? because they just wanted the money, they seen is as their money, their entitlement. It is exactly these people who will get themselves into trouble with payday lenders. There is a service available and it is not compulsory to use it, you use it at your own risk.

 

[muddy mudguard]

Exploiting people in vulnerable positions is wrong though. Some people have no choice, and that's what is wrong.

This is BS! Some people have no choice but to borrow money off someone else that they can't afford to pay back?

Under what circumstances?? Why would they have no choice?

If it's health related, they can use the NHS for free. What other scenarios would they have no choice in??

Oh, cos they overspent or over committed themselves in the first instance? Tough!

 

[muddy mudguard]

Car breaks down and costs more than I have saved to fix, need car for work. Take out payday loan to cover repairs or can't work. Child destroys shoes, needs shoes for school. Child goes without shoes or Payday loan company don't get money... My fault how...?

Should've had more saved up.

 

[EFC Si]

You can say that it's their own fault for becoming trapped in it & ultimately it is, but that doesn't excuse the companies who set their stall out to attract & then milk, people who are at the lower end of the earnings pyramid, with interest rate levels that are nothing short of obscene. It's fundamentally wrong & has been incorrectly legitimised by our society imo.

Really do whole heartedly disagree with all of this. People know full well whether they can afford to take out one of these loans before they do so. If they can't, then they get into more debt and their situation worsens. YET, you would portray them as the victim?

 

[Foot Long Hot Dog]

Really do whole heartedly disagree with all of this. People know full well whether they can afford to take out one of these loans before they do so. If they can't, then they get into more debt and their situation worsens. YET, you would portray them as the victim?

Where have I used the word 'victim'?

I also said in that very quote that ultimately it's their own fault......

I merely have an issue with sanitised loan sharks charging out loans with APR's equivalent to over 5000% to our society's most vulnerable. Pardon me if you find my view on this practice being repugnant, offensive to the 'free market'.

 

[Blue 1]

Should've had more saved up.

Hahahaha.

 

[EFC Si]

Where have I used the word 'victim'?

I also said in that very quote that ultimately it's their own fault......

I merely have an issue with sanitised loan sharks charging out loans with APR's equivalent to over 5000% to our society's most vulnerable. Pardon me if you find my view on this practice being repugnant, offensive to the 'free market'.

I didn't say you used that word specifically, I said you portrayed them as the victim.

The loans aren't THAT unreasonable. Borrow 100 quid for 28 days and you back 135....really not the end of the world. The terms are clearly displayed before you take the loan out, and this 'people don't have any other choice' claim is just not the case at all.

People get tempted by them because they're so easy to get and they don't bother to think or even care for that matter, about the long term consequences when they can't pay them back.

 

[bignev23]

There's a wider debate there, which is the whole culture of 'buy today pay tomorrow', that we've lived with since the 80's, when the idea of delayed gratification, became a thing of the past.

However, I think that across the spectrum of lenders then these payday loans companies are as low as you can get. As despite your comments about using their 'service' correctly & living within your means etc, these companies prey on those who don't have that level of discipline & become entwined in a cycle of debt that sees them paying out a chunk of their disposable income every month just to feed the interest for an item or a bill that they originally borrowed to fund months or even years prior.

You can say that it's their own fault for becoming trapped in it & ultimately it is, but that doesn't excuse the companies who set their stall out to attract & then milk, people who are at the lower end of the earnings pyramid, with interest rate levels that are nothing short of obscene. It's fundamentally wrong & has been incorrectly legitimised by our society imo.

These companies are not the only ones. Most big companies like British Gas, United Utilities, Scottish Power and Virgin and Sky ect charge people more if they haven't got a bank account so can't set up direct Debits they also charge more for pre pay meters which poor people usually have.

 

[Nickpop]

As a staff member for approx 15 years in a bank, you wouldnt believe the amount of STAFF who use these types of companies????

The very people who are supposed to give you sound financial advise are also heavy in debt due to overspending. I regularly see staff accounts who use 3-4 of these companies in the same way as customers. Staff are making decisions to lend based on account usage, and will rarely lend money to anyone use these sort of companies, but they themselves are also at it.

Money management is something which should be taught from a young age and in schools (instead of religion but thats another topic). The average "Bob The Builder" leaves school, goes up a ladder for years and will never understand how finances work and the pressures/temptation of buying on credit, its more than just a case of "if you dont have it, dont buy it". Loansharking is on the go as long as prostitution, people will always be tempted. Fair play to those who never borrow, but some people are weak.

 

[noharmdone]

As a staff member for approx 15 years in a bank, you wouldnt believe the amount of STAFF who use these types of companies????

The very people who are supposed to give you sound financial advise are also heavy in debt due to overspending. I regularly see staff accounts who use 3-4 of these companies in the same way as customers. Staff are making decisions to lend based on account usage, and will rarely lend money to anyone use these sort of companies, but they themselves are also at it.

Money management is something which should be taught from a young age and in schools (instead of religion but thats another topic). The average "Bob The Builder" leaves school, goes up a ladder for years and will never understand how finances work and the pressures/temptation of buying on credit, its more than just a case of "if you dont have it, dont buy it". Loansharking is on the go as long as prostitution, people will always be tempted. Fair play to those who never borrow, but some people are weak.

Mate..

What a post that is..

Superb.

 

[Steve0]

People are missing the point somewhat I feel. Obviously you should pay back your debts and that but these companies start piling on the charges after one missed payment, a £300 loan can result in them asking for over £900 after just one missed payment with 'late fees' and 'extra' interest.

This is precisely what loan sharks do. It must just be an uncritical deference to big business that people think this is morally acceptable but would object to some scally going round to an old dear's house with a baseball bat.

Logically, you can't condemn one practise without condemning the other.

 

[The-Golden-Vision]

People are missing the point somewhat I feel. Obviously you should pay back your debts and that but these companies start piling on the charges after one missed payment, a £300 loan can result in them asking for over £900 after just one missed payment with 'late fees' and 'extra' interest.

This is precisely what loan sharks do. It must just be an uncritical deference to big business that people think this is morally acceptable but would object to some scally going round to an old dear's house with a baseball bat.

Logically, you can't condemn one practise without condemning the other.

A CCJ is a lot less painful than a baseball bat tbf.