The Anonymous Widower

The Archbishop In The Wonga

Before you open your mouth, it is always best to check your facts or in the case of Justin Welby, your church’s investments. If he had he’d have found that his target yesterday, was a company they’d indirectly invested in. It’s reported here on the BBC.

A few weeks ago, I wrote about Robert Peston’s views on Wonga. I said this.

Obviously, Wonga did a lot of analysis on their data and this has led them to their success, as they have the right model and technology. Peston says Wonga’s technology is world class.  If banks such as RBS, Northern Rock and Bradford and Bingley had had world-class technology, they might not have gone bust.

I would add to that now. Perhaps, if when you sign any credit agreement or loan, how many would be refused if versions of Wonga’s technology is used. The success of any loan or credit company depends heavily on the quality of its lenders.

But the downside is that there would be a hard-core of people unable to get any form of credit.  No reputable lender, and especially a credit union, would ever touch them.

July 26, 2013 Posted by | Finance, World | , , | 2 Comments

Archbishop In Cloud Cuckoo Land

This story about how Justin Welby aims to compete Wonga out of business, is on the BBC today. Here’s the jist.

The Archbishop of Canterbury has warned the online lender Wonga that the Church of England plans to force it out of business – by competing against it.

He may have laudible aims, but like the poor, loan sharks, where legal or not, will always be with us.

What the people who use Wonga need is money and if everybody supported credit unions, that wouldn’t give any money directly to those who need it.

Credit unions, like all responsible lenders, don’t lend money to those who would be unable or unwilling to pay it back.

July 25, 2013 Posted by | Finance, News | , , , , | 4 Comments