Wonga profits leap 35% as demand for loans increases

wotsthat

http://www.bbc.co.uk/news/business-23942067

Wonga, the short-term loans provider, has reported pre-tax profits of £84.5m for 2012, an increase of 35% on the previous year.

The company, which has faced criticism from many, including the Church of England, over its interest charges, said demand for its loans had soared.

In its annual statement, Wonga reported £1.2bn in lending, an increase of 68%.

The poor continue to make the rich richer - will they never learn?

Thrugelmir

wotsthat wrote: »

The poor continue to make the rich richer - will they never learn?

That's a lower rate of return than some of the big banks make.

shortchanged_2

wotsthat wrote: »

http://www.bbc.co.uk/news/business-23942067



The poor continue to make the rich richer - will they never learn?

It's always been the case hasn't it.

Loughton_Monkey

I don't know if the Archbishop got any commission, but he sure publiced them extremely well. For some reason, his threat to open up competition within the churches, and drive them out of business hasn't had them quaking in their boots...

In round figures, looks like 1 million 'poor' people taking about 4 loans a year, and paying back £300 a year interest in total.

So it puts a rough figure on the true cost of not being able to budget.

Looks like they even paid £20m in tax.

HAMISH_MCTAVISH

Loughton_Monkey wrote: »

In round figures, looks like 1 million 'poor' people taking about 4 loans a year, and paying back £300 a year interest in total..

Indeed.

On average, a million people borrow £300 four times a year and pay back £375 each time.

ILW

wotsthat wrote: »

http://www.bbc.co.uk/news/business-23942067



The poor continue to make the rich richer - will they never learn?

Is there soome rule that says if you are poor you also have to be stupid, or is the the other way round?

Graham_Devon

wotsthat wrote: »

http://www.bbc.co.uk/news/business-23942067



The poor continue to make the rich richer - will they never learn?

Learn what exactly? How to grow money trees?

wotsthat

Graham_Devon wrote: »

Learn what exactly? How to grow money trees?

If Hamish is correct then the average punter borrows at a cost of £75 4x per year.

If they improved their budgetary skills they'd be £300/ year better off.

Another one of life's choices. Unless you want to kid yourself that Wonga's customers 'simply' have no choice.

Graham_Devon

wotsthat wrote: »

If Hamish is correct then the average punter borrows at a cost of £75 4x per year.

If they improved their budgetary skills they'd be £300/ year better off.

Another one of life's choices. Unless you want to kid yourself that Wonga's customers 'simply' have no choice.

If you are on a tight budget, unknown expenses can catch you out.

We all have them. You can't assume that what goes out every month in general is going to always cover your expenditure.

For many people on a very tight budget, thinkgs like a MOT failiure, dentists, new tyres for the car, unknown travelling costs etc, money has to be found.

People renting may find themselves having to move all of a sudden for example. This isn't part of your outgoing direct debits each month.

Some months are just difficult and no amount of "to the penny" budgeting or your version of "education" will sort some people out if money is running extremely tight anyway.

I'd say it's a total lack of understanding of how some have to live that has you suggesting they just need some education. Maybe the tables could be turned? Maybe looking at how others outside of your privileged position live would be a good place to start....otherwise, to be frank, you are just talking down to people.

To pretend people can simply budget for every unknown is just as bad as pretending every single one of wonga's customers had no choice.

For some, just paying the prescription costs for antibiotics to treat an infection they didn't "plan for" can break them that month.

ILW

Graham_Devon wrote: »

If you are on a tight budget, unknown expenses can catch you out.

We all have them. You can't assume that what goes out every month in general is going to always cover your expenditure.

For many people on a very tight budget, thinkgs like a MOT failiure, dentists, new tyres for the car, unknown travelling costs etc, money has to be found.

People renting may find themselves having to move all of a sudden for example. This isn't part of your outgoing direct debits each month.

Some months are just difficult and no amount of "to the penny" budgeting will sort some people out if money is running extremely tight anyway.

I'd say it's a total lack of understanding of how some have to live that has you suggesting they just need some education. Maybe the tables could be turned? Maybe looking at how others outside of your privileged position live would be a good place to start....otherwise, to be frank, you are just talking down to people.

To pretend people can simply budget for every unknown is just as bad as pretending every single one of wonga's customers had no choice.

If things are that tight, how come they can afford to pay all that interest, but could not put away a few pound a week for emergencies?

michaels

Loughton_Monkey wrote: »

I don't know if the Archbishop got any commission, but he sure publiced them extremely well. For some reason, his threat to open up competition within the churches, and drive them out of business hasn't had them quaking in their boots...

In round figures, looks like 1 million 'poor' people taking about 4 loans a year, and paying back £300 a year interest in total.

So it puts a rough figure on the true cost of not being able to budget.

Looks like they even paid £20m in tax.

Is the 1.2bn total advances - ie if they lend 100m for a month 12 times then that makes 1.2bn of lending? IN that case on an average outstanding of 100m they have made 300m of revenue?!