Advice regarding Wonga

Dovah_diva

ImMeSoHi wrote: »

I took a Wonga loan out, it is due to be repaid this Sunday and is about £800. I have already set up a new bank account with a different bank and about to request my work to put my wages into this new account.

So did you ever have any intention of repaying this loan as agreed? Because it sounds very much like you didn't - and that is really very low. To add insult to injury, you want the loan to be completely interest free - and on your terms. Classy.

midnight_express

Dovah_diva wrote: »

So did you ever have any intention of repaying this loan as agreed? Because it sounds very much like you didn't - and that is really very low. To add insult to injury, you want the loan to be completely interest free - and on your terms. Classy.

In other words fraud.

imoneyop

matttye wrote: »

We agree then.

I was just saying I wouldn't *only* cancel CPA, but also use a separate account as a precautionary measure I.e. do both, not one or the other!

Looks like the OP has done the 1st step of setting up a new account (hopefully with an unconnected bank). She doesn't say when her wages are due - but I would worry she has left it too late to change the account if they are due before the weekend.

So she needs to tell the bank that the CPA is cancelled (I agree with GB she will likely have to be forceful with them and speak to someone of authority rather than just a front-line call handler):

You-kip

It really begs the question on how Wonga actually profits as not trying to stereotype but it seems most people going by this forum only seem to take out wonga loans when they now full well they have no intention whatsoever of paying it back.

Most people who take out Wonga loans are over stretched and mainly skint so surely this must tell the Wonga team that getting back repayments on some of these customers may well never happen.

fozmcfc

John1993 wrote: »

In the original post it was telling that there wasn't even a "I may not be able to pay, can anyone suggest ways of getting the money together?" It reads as though he or she (presumably she) just takes it as read that if you take out a Wonga loan then the next step is trying to renege on the deal.

With customers like this, I'm surprised that Wonga can evver turn a profit, and not surpprised at all at the rates that they have to charge to try to.

Yes, clearly she thought, I'll get a payday loan out and not pay it back, when I should.

I guess she has either been reading up on here or other places, what to do when you can't afford to pay a payday loan.

I suppose some people get desperate and that desperation, outweighs, the consequences of their action. In this case 6 years of screwed up credit, possibly.

The way payday loan companies operate, there is a good chance, that another will lend now or even in the near future to the OP.

That is why it is wrong on both sides, yes people like the OP are completely in the wrong, but if payday loan companies, lend to virtually anyone, with minimal or no checks, then more fool them.

dealer_wins

ImMeSoHi wrote: »

I took a Wonga loan out, it is due to be repaid this Sunday and is about £800. I have already set up a new bank account with a different bank and about to request my work to put my wages into this new account.

These "wages" are your PAYDAY, you took out a PAYDAY loan.

Heres an idea, why dont you pay off your PAYDAY loan on your PAYDAY!!!!!!

SeanG79

John1993 wrote: »

In the original post it was telling that there wasn't even a "I may not be able to pay, can anyone suggest ways of getting the money together?" It reads as though he or she (presumably she) just takes it as read that if you take out a Wonga loan then the next step is trying to renege on the deal.

With customers like this, I'm surprised that Wonga can evver turn a profit, and not surpprised at all at the rates that they have to charge to try to.

December 2011 accounts show Wonga Group Limited had a Net PROFIT after tax of over £45million, I reckon thats a pretty healthy profit on a turn over of £184million...not many businesses can show a 24% net profit margin...

bengal-stripe

Dovah_diva wrote: »

So did you ever have any intention of repaying this loan as agreed? Because it sounds very much like you didn't - and that is really very low. To add insult to injury, you want the loan to be completely interest free - and on your terms. Classy.

I suppose, OP lives up to her nickname!

John1993_2

SeanG79 wrote: »

December 2011 accounts show Wonga Group Limited had a Net PROFIT after tax of over £45million, I reckon thats a pretty healthy profit on a turn over of £184million...not many businesses can show a 24% net profit margin...

"Turnover" is often a horribly misleading term in finance, and so is rarely used. Income would make more sense. The data show that it wrote off over 40% of all of its income in that year.

Also, to put things into perspective, £45, is pretty pooor foor a financial company. A single swaps desk in an investment bank (circa 10 staff) would be exppected to make hundreds of millions each year.

As another comparison, my first desk had a retun on equity of 450%, despite "charging" about a quarter of a hundredth of a percent interest on each deal.

Basically, when the only product is money, the percentage returns need to be looked at very differently to when the produt is a consumable or a product.

quidsy

Last year we were short by several hundred pounds on a house move, we had used all our savings but were slightly short & a week from payday. I took out a quickquid loan, paid it & the interest back a week & half later as agreed & it got me out of a tight spot.

IF you use it as intended & are sure that it is an interim measure & that you can pay it back, they serve a useful purpose.

I had no one else I could borrow from & as me & oh both work full time we had no choice if we wanted to have a roof over our heads.

So no, not everyone using these first does so intending to never pay them back but I do agree that they need to be stricter on their checks & who they lend to.