Wonga/Payday Express - Why don't they play ball?

Mara69

asbokid wrote: »

Just where is this money coming from? We must be told.

Go on I'll bite. Why must we be told where PDL companies get their money from? What business is it of yours? As long as they keep accurate records for tax etc, I am baffled as to why they should tell us (you) where they get their money from. Do Tesco also have to tell us?

Peelerfart

Good Morning thread, I'm looking forward to lunch today.

antrobus

Deleted_User wrote: »

Can you keep your logic and facts off this thread please. This is a thread for insane emotional ramblings and we don't need you bringing your fancy 'knowledge' round these parts, thank you very much.

Sorry about that. I suffer from this irrational compulsion to correct errors of fact.

asbokid wrote: »

Wrong. With dodgy math like that, you'd make a perfect punter for.wanka.com!

Here's the reality:

In 17 states of the Union there are explicit laws criminalising "payday loans". Nine more states use other Anti-Usury laws to ban the despicable practice. Lending at a rate above a certain APR is a typical threshold.

Sorry, I'm afraid it's your math that's dodgy. Here's what the Consumer Federation of America has to say about the legality of payday lending;

Thirty-three states enacted safe harbor legislation for payday lenders and permit loans based on checks written on consumers' bank accounts at triple digit interest rates or with no rate cap at all.

whilst

Seventeen States and the District of Columbia Prohibit Extremely High Cost Payday Lending

Of those 17 states (ignoring the DoC), 1 appears to have simply banned it, in 3 it violates criminal usury statutes, it is "defacto prohibited" in 8, and another 5 apparently permit payday lending but have interest rate caps that make the business unattractive.

See: http://www.paydayloaninfo.org/legal-status

Funnily enough that's exactly what it says on the Wikipedia page for 'Payday loans in the United States' as well (see http://en.wikipedia.org/wiki/Payday_loans_in_the_United_States) as in;

Payday lending is legal and regulated in 37 states. In 13 states it is either illegal or not feasible, given state law

asbokid wrote: »

And *throughout* the union, federal law forbids the issuing of payday loans to vulnerable sectors of society.

Which federal law would that be?

antrobus

_Andy_ wrote: »

Please keep the thread on track and for the discussion of what we had for meals today please.

Well, I shall be having fish and chips later if anyone's interested.

asbokid wrote: »

Has anyone approached the private equity toads who are providing the funding for this major advertising blitz to promote this rogue lender?

Wonga is owned by Dawn Capital, or more specifically Dawn Venture Capital Investments.

brightside100

People take these loans out of desperation sometimes , so please don't be so quick to judge.

The savings account will remain untouched if they are trying to take money from your debit card as it will just decline.

Cancell any direct debits with them and standing orders and keep checking they have not set one back up.

Long term change banks , short term your savings account is fine

malkyh

brightside100 wrote: »

People take these loans out of desperation sometimes , so please don't be so quick to judge.

The savings account will remain untouched if they are trying to take money from your debit card as it will just decline.

Cancell any direct debits with them and standing orders and keep checking they have not set one back up.

Long term change banks , short term your savings account is fine

Yes, desperation is the key to why these loan companies are so successful. However, should you find yourself in the unfortunate position that they only loan you will get is with a Payday Loan company then this in itself should start the warning bells screaming.

These companies are not the 'good fairy coming to save you' because all the other 'good' companies turn you down. Chances are it will all end in tears.

Hanky_Panky

malkyh wrote: »

Chances are it will all end in tears.

Certainly agree with the rest of your post however this bit - no.

Was given a bit of insider knowledge the other day from an old colleague. Delinquency rates for these type of payday loans is only 5% surprisingly. So in other words only 5% of people taking out these payday loans fall into arrears and miss payments, the remaining 95% pay - perish the thought ! Certainly puts things in perspective a bit.

malkyh

Hanky_Panky wrote: »

Certainly agree with the rest of your post however this bit - no.

Was given a bit of insider knowledge the other day from an old colleague. Delinquency rates for these type of payday loans is only 5% surprisingly. So in other words only 5% of people taking out these payday loans fall into arrears and miss payments, the remaining 95% pay - perish the thought ! Certainly puts things in perspective a bit.

And that 5% are on here moaning that they missed their payment and are now dealing with the 'well known' consequences.

asbokid

Hanky_Panky wrote: »

only 5% of people taking out these payday loans fall into arrears

Your 'factoid' is about as credible as that sighting of Elvis on the moon.

In 2007, the default rate was 20% on payday loans. Today, it can only be higher.

Admit it.. You just made up that figure.

asbokid

antrobus wrote: »

Wonga is owned by Dawn Capital

Dawn Capital is one of the investors in wanka.com.

Dawn Capital is keen to stress that it is not the only investor- "it's not all our fault!"

Dawn has just one puppet on the board of Wonga.. Joshua Bell.

Other wonga investors include Balderton Capital, Greylock Partners and Accel Partners.

Besides. That doesn't answer the question: whose capital is it?

Balderton, Greylock, Accel and Dawn are just slithery and secretive private bankers. It ain't their money. They just abuse it.

We are told that much of wonga's capital comes from charity investments, university endowment funds and pension funds.

Do those who have entrusted money to these shadowy bankers realise just how it is being abused?

We need to identify those charities, universities and pension funds.

They need to be told: that's our cash they are sinking into the loan shark industry. We demand they pull the funding and starve this Beast of oxygen.