MSE News: Wonga responds to US debt comparison jibes

gizmo111

I have used wonga paid on time and had no problems. First time I was on holiday and miscalulated my dates for DD's and money being deposited by 4 days and would have ended up with 6 small DD's bounced and the bank charges that go with them - £150 - I borrowed £250 from wonga at a cost of about £20 and everything went through fine and saved me around £130 in bank charges. I think the difficulty is when people use these month after month and never get back in control of their money and start the month off short.

jamesd

Baricus wrote: »

If you need money for a must-have thing or an emergency, and you only need it for a few days, you are a fool to use anyone other than Wonga.

See LendersCompared, the mandatory site for large doorstep lenders that some othrr lenders also use. It's often possible to get a cheaper deal by borrowing from a lender there and then repaying early. It's also a good way for those who can't get normal credit to escape from the even higher rates charged by Wonga and payday lenders.

Percy1983

I have got to say I have never used any of the payday loan companies but as some have mentioned £20 to wonga or direct debits bouncing all over and I know which I would do.

The problem is those who take the loans but in paying it back just means they will need another next month, in short rather than a small hicup in there finances they have no control to which wonga and such like really can't help.

wallbash

Just read John Moorwood reply to his critics .
I hope never to be in a rush to use his services , but it looks very straightforward and clear.

You borrow money and you know exactly how much to repay , what more is there to it.
Can't afford the loan , don't borrow.

To sum up , well done Wonga .

FullTimeBadMan

If anything, Wonga should levy greater fees. Clearly the only people who would borrow at such rates are the people who can afford to pay it back twice over anyway.

RobertoMoir

haremscarem wrote: »

see the accounts of people who have had cash removed from bank accounts when they didn't authorize it.

Actually with these kinds of deals they almost certainly did authorise it via agreeing to the small print without reading or understanding it, or being too desperate to care.

A small distinction, and you might think I'm splitting hairs, but on the other hand I feel it proves my point. PDL companies are not a "scam". They are far more insidious than that.

chambta

gizmo111 wrote: »

I have used wonga paid on time and had no problems. First time I was on holiday and miscalulated my dates for DD's and money being deposited by 4 days and would have ended up with 6 small DD's bounced and the bank charges that go with them - £150 - I borrowed £250 from wonga at a cost of about £20 and everything went through fine and saved me around £130 in bank charges. I think the difficulty is when people use these month after month and never get back in control of their money and start the month off short.

Surely cancelling the direct debits would have cost nothing?

gizmo111

chambta wrote: »

Surely cancelling the direct debits would have cost nothing?

But that would have stuck late payments all over the place - I was in Africa at the time so phone calls were not an option - they would have cost far more than the charge from wonga. Point I'm making is I messed up with my dates and transferring money in time and for £20 ish I was dug out of a hole by a PDL company - in my opionion this is all they should be used for a quick fix for a short time that can be repayed. The trouble is when people can't repay and keep rolling over.

SHIPSHAPE

I don't understand the furore with Wonga and their like, they are a business and in it to make money, just like anything else you buy.

I had to buy a part for my Ford car and I know that the particular part at production is about £8 yet is sold, and only available from Ford, for £139. That's a massive mark up.

I gather Dell ink for printers have something like a 1000% mark up. There was a feature on Watchdog recently where popcorn at a cinema means people can pay 800% over the odds!

Why single out Wonga? We get turned over everywhere.

JimmyTheWig

I think the problem, Shipshape, is that Wonga are forced to display their APR on their adverts.

If your bill from Ford read
Car part: £139.00 (mark-up 1637.5%)
then many people would be as up in arms as they are about Wonga.