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There is a APP for that!
nervousmother
Posts: 2,885 Forumite
omg.. dont know if this has been posted but couldnt believe this one!
A 3,000% loan via an iphone app - now that's responsible lending!
Sarah Coles
Jan 15th 2010 at 4:00AM
Filed under: Loans, Technology and Online
I know there's an app for everything now. I know you can find the best carriage on the train, or the nearest bar serving your favourite tipple, or the only single attractive person in the crowd. All these things have no-doubt enhanced our lives immeasurably, but there are certain jobs for which you never ever want anyone to invent an app.
Something that falls squarely into this category has hit the shelves today, the credit application app, for one of the most outrageously poor value loans I have ever come across. The app, from Wonga, lets borrowers have up to £1,000 in their bank account within 15 minutes at the astounding cost of 3,000% interest.
The cost of borrowing at this level is breathtaking, with a £1,000 loan, turning into a £2,861 debt if you held it for 6 months.
The company defends itself, saying it's only meant for short-term loans, to last people until payday. It points out that if you needed £100 for a week, for example, it would cost you £7. But this is no defence, it's still a major rip off. It would only ever be used by those in desperate situations, and so it's doing what some financial companies like to do best - bleed people dry when they are at their lowest point.
Consumer groups are challenging the way these loans are being made available. and whether the consumer protections can ever be vigorous enough. But by far the best approach to these things is to steer well clear.
We all have months where we run out of money before we run out of month. And in these instances we just have to suck it up and avoid doing anything interesting or fun for the rest of the month. It is physically possible to live off rice and beans and cups of black tea, and it's a vital lesson in budgeting.
How an app was ever allowed to hit the shelves is a mystery. Presumably we are just days away from the apps to enable us to get our salaries paid directly to betting companies, have our insurance automatically renewed at a massively inflated cost, or automatically 'invest' in whatever passing fad the fashion industry deems the flavour of the month.
Surely apps should stick to what they are best at - finding attractive single strangers or turning phones into harmonicas - and stay away from the murky world of terrible value financial products
A 3,000% loan via an iphone app - now that's responsible lending!
Sarah Coles
Jan 15th 2010 at 4:00AM
Filed under: Loans, Technology and Online
I know there's an app for everything now. I know you can find the best carriage on the train, or the nearest bar serving your favourite tipple, or the only single attractive person in the crowd. All these things have no-doubt enhanced our lives immeasurably, but there are certain jobs for which you never ever want anyone to invent an app.Something that falls squarely into this category has hit the shelves today, the credit application app, for one of the most outrageously poor value loans I have ever come across. The app, from Wonga, lets borrowers have up to £1,000 in their bank account within 15 minutes at the astounding cost of 3,000% interest.
The cost of borrowing at this level is breathtaking, with a £1,000 loan, turning into a £2,861 debt if you held it for 6 months.
The company defends itself, saying it's only meant for short-term loans, to last people until payday. It points out that if you needed £100 for a week, for example, it would cost you £7. But this is no defence, it's still a major rip off. It would only ever be used by those in desperate situations, and so it's doing what some financial companies like to do best - bleed people dry when they are at their lowest point.
Consumer groups are challenging the way these loans are being made available. and whether the consumer protections can ever be vigorous enough. But by far the best approach to these things is to steer well clear.
We all have months where we run out of money before we run out of month. And in these instances we just have to suck it up and avoid doing anything interesting or fun for the rest of the month. It is physically possible to live off rice and beans and cups of black tea, and it's a vital lesson in budgeting.
How an app was ever allowed to hit the shelves is a mystery. Presumably we are just days away from the apps to enable us to get our salaries paid directly to betting companies, have our insurance automatically renewed at a massively inflated cost, or automatically 'invest' in whatever passing fad the fashion industry deems the flavour of the month.
Surely apps should stick to what they are best at - finding attractive single strangers or turning phones into harmonicas - and stay away from the murky world of terrible value financial products
0
Comments
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shocking:eek::eek::eek::eek:
the other one i saw recently was, a payday loan advertising text application for loans to studentsHi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0 -
WOW!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1
that is heavy intrest.
Thanks for that really intresting NM.
Its a rip off world allways someone waiting to exploit.
sizzler:eek:0 -
that's terrible, shouldn't be allowed!0
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Makes me angry for sure! I want to scream 'some one should stop that!' but nothing will ever be done eh?0
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i agree mich
i really don't see why these things aren't capped, they shouldn't be able to charge that. i know some people argue it's a short term loan thing but that still isn't justification....grrrrr0 -
well...what i'm thinking may end up in me being banned......We all die. The goal isn't to live forever, the goal is to create something that will0
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Just seen this, that is truly shocking, and they wonder why so many people are getting into debt nowadays?
That's making it too easy, and with that kind of interest....
There should be a way of stopping this.0 -
I read that on Friday too. It also said that they sufficiently credit check their clients and they quote an annual APR which the loans aren't meant to run that long. Blah, blah, blah! I'm glad that is something I will not be using.
:j :j
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about time they were shut down. end of.:mad:0
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