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Wonga/Payday Express - Why don't they play ball?
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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.
Not remotely interested in the opinion of someone as wacko as you.
My source is internal - yours is....oh yes made up to try and prove your ineffectual arguments.
Troll away - couldn't care less.0 -
Public Law 109-364, is a good example.
The Law forbids payday lending to any member of the US Armed Forces or their dependents.
The Law came in response to a 2006 US Department of Defense study:
http://www.defense.gov/pubs/pdfs/report_to_congress_final.pdf
The DOD study confirmed that Payday Loans have a devastating effect on the psychological welfare of borrowers.
Where those borrowers are members of the US.MIL (or their dependents), this was found to interfere with their military readiness and their overall efficiency in deployment.
The Act forbidding payday lending to any US military personnel and their dependents came into force October 2007.
Payday lenders are also banned from setting up shop within a statutory zone around many US military bases.
See: http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:h5122enr.txt.pdf
This raises an interesting question.
The US military has a large deployment in the UK. Tens of thousands of US military personnel and their families are living and working on British soil where they use local banking facilities.
Many of those service personnel are married to British subjects and they have children who enjoy dual citizenship.
Wonga is forbidden under US Federal Law from lending money to any of those individuals. The Law even forbids payday lending to US.MIL 'children' who are between the ages of 18 and 22 and still in education.
Those persons covered by this Act who have taken out payday loans from wonga.com and other scum-lenders should seek an attorney. It's almost certain that the loan contract is null and void, which extinguishes all indebtedness.0 -
Hanky_Panky wrote: »My source is internal
Your "inside source" is telling lies. That goes with the territory, of course.
In truth, the default rate on payday loans is not 5% but closer to 50%.
Skiba and Tobacman are two leading academics in the field of Payday Lending. They have spent decades researching the scandal. In their 2008 report they reveal that.."over half of payday borrowers
default on a payday loan within
one year of their first loans"
Furthermore, for that report, Skiba and Tobacman used a dataset that was over 10 years old. The rate of defaulting today for scum-lenders like wonga will be even higher.
Your "inside source" is lying to deceive investors and to discourage any more defaulters.
[1] Skiba, P.G. & Tobacman, J.B. (2008) Payday Loans, Uncertainty and Discounting: Explaining Patterns of Borrowing, Repayment, and Default, Vanderbilt Law School. Available at http://www.aeaweb.org/assa/2009/retrieve.php?pdfid=150 -
Just got in from the casino and its rather cold outside. Gonna have a nice hot mug of tea and 2 digestive biscuits before bed.0
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The US military has a large deployment in the UK. Tens of thousands of US military personnel and their families are living and working on British soil where they use local banking facilities.
Many of those service personnel are married to British subjects and they have children who enjoy dual citizenship.
Wonga is forbidden under US Federal Law from lending money to any of those individuals. The Law even forbids payday lending to US.MIL 'children' who are between the ages of 18 and 22 and still in education.
Those persons covered by this Act who have taken out payday loans from wonga.com and other scum-lenders should seek an attorney. It's almost certain that the loan contract is null and void, which extinguishes all indebtedness.
Huh, what??? :rotfl:
No, it isn't! Last time I checked, the United Kingdom is a seperate country, not a state of the USA!
What jurisdiction does this law have over here? None at all.You wanna hear about my new obsession?
I'm riding high upon a deep recession...0 -
What jurisdiction does this law have over here? None at all.
Instead of scoffing, you should look it up! [1]
You might be surprised!
For US visiting forces, there is a duality of jurisdiction under a Status of Forces Agreement dating back to World War II. The Penal Code of the USA applies on all tenant bases of the USAF that are sited on British soil.
I'm no lawyer, but I would suspect that a contract concluded between wonga.com and a US serviceman (or his dependents) would be unenforceable in the civil courts. This would be on the basis that the contract was unlawful under the provisions of the 2007 US Federal Law, as above.
Furthermore, it would be a logical argument that since the contract was unlawful that the indebtedness should be extinguished, too. But as I said, I ain't no lawyer. Are you?
[1] http://www.fas.org/sgp/crs/natsec/RL34531.pdf0 -
In truth, the default rate on payday loans is not 5% but closer to 50%
Assuming you are correct (and that is quite an assumption!), this is indeed worrying. 50% of people that get loans are unable to understand the very simple terms and conditions. 50% of people are so [STRIKE]stupid[/STRIKE] desperate that they will happily take out a short term loan with high interest and then fail to pay it. That frightens me, but not because of the loan companies but because of the sheer foolishness of these people. Someone on MSE wrote and said that they took out three pay day loans - two of which were for £900!! What sort of emergency demands nearly two grand?! How the hell could anyone pay that back on time? Utterly, utterly foolish.
You seem particularly venomous towards Wonga, but their website is to transparent and easy to understand I fail to see how anyone cannot understand the very simple terms and conditions. Wonga have a consumer credit licence from the Office of Fair Trading and are members of the Finance and Leasing Association.
Can't comment on other pay day loan companies work as I have no experience of them. I am sure some are unscrupulous; so the best thing to do would be avoid them like the plague surely?
Tell me, asbokid (rolls eyes); at what point do people like you stop spouting bile and hatred at the companies and start accepting that that responsibility for defaulting on these loans lies with the borrower? Or is that too radical an idea; that people actually accept responsibility for their own actions?0 -
Simple reason "asbo the beffuddled" is waging war, He IS that very fool who grabbed as much cash as he could from them without a moments thought about the repayment.
His choice of username alone tells a story about his level of education.
The rest if us look at you asbo, with sorrow. The schooling system WE created has turned out something really quite embarrassing.
Whilst we don't see any intelligence, morality or valid points in any of your posts, we do feel a little embarrassed regarding our part in your failed schooling.0 -
Dawn Capital is one of the investors in wanka.com....
Yes, we were both wrong. You claimed that the "slimemould responsible for this shameful state of affairs are Balderton Capital", I said that they were owned by Dawn Capital, largely because that's what it said on page 9 of Private Eye no 1306. The truth is that Wonga is owned by lots of people.0
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