A Wonga Moment
I first became aware of Wonga, the on-line lender, a couple of years ago at an on-line awards ceremony. It didn’t win, and I can remember telling a lot of people at the time, that I didn’t think it was very ethical or even legal, as it charged a very high rate of interest for small sums. I think I even asked the guy doing the presentation a question on this basis, but I can’t be sure.
I’d hoped that the businesss had gone to the dogs, as I didn’t like it, but I now know it hasn’t, as it adorns the shirts of Blackpool FC. And then on the train to Norwich this morning, I saw the headline, What ‘pay day’ lender Wonga’s television advertisements fail to dwell on: 2,689% APR , in the Mail on Sunday, being read by the guy next door.
In other words, they charge hundreds of times more than my preferred on-line lender, Zopa.
I have no experience of using them, but the Mail has a fairly worried tone about the company. I would suggest that before you use Wonga, you read their article and discuss it with someone who knows finance better than I do!
I also write this from experience of being a partner in a finance company and the sometime holder of a Consumer Credit Licence. I also once had a business card that amongst the things I did, said. “Loans Sharked”
Wonga though might have a postive side. When there is a general awareness of how much they are being charged by some of the highly-advertised finance companies, people may actually realise that there are other and much better ways of getting their finances in order.
The Anonymous Widower 
I too consider Wonga and several other similar companies unethical. The TV adverts seem to be pitched at people with a lowish disposable income and no savings, you can borrow a small sum for up to 30 days. It gives me the impression that its clients are silly girls who see a “must have” pair of shoes, borrow the money from Wonga, with the plan to pay it back on payday. Although the appalling interest rate horrifies us, the TV ad gives an example – it is something like borrowing £70 for 16 days, and the interest in £18.00. Which to silly girls – and silly lads – sounds like a bargain! YOu and I both know that they would be better with a credit card and paying off the full balance every payday. But they dont. I suspect quite a few people cant afford to pay back what they have borrowed, and continue to incur huge rates of interest.
Liz
Comment by liz | November 28, 2010 |
My thoughts exactly. Incidentally the company tht won the Internet award was one that victuals ships. Cargo and other vessels just book everything they need on-line over a satellite and then its delivered at their next port of call. The company is based in London although they are I think Danish. They’ve been doing it for a few years now and have a massive pecentage of the market. ow that’s what I call a good internet application, which has created quite a few hundred jobs in London.
Comment by AnonW | November 29, 2010 |
[…] purpose has got difficult. Unless of course you have no credit rating, so you can go down the pay-day loan route and bankrupt […]
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[…] on Betfair. But the only company, which anyone could possibly have any serious objection to is Wonga, which is a very high interest rate lender, that I would never touch with a bargepole. Unless of […]
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