Wonga profits leap 35% as demand for loans increases

wotsthat

antrobus wrote: »

I tend to take the view that the price being extracted is not that unreasonable given the service that is being provided (offering small value loans to all and sundry on an almost instantaneous basis is always going to be a risky and therefore pricey business) and that in reality the counter argument is that the service shouldn't be provided at all.

It's not the cost vs risk I have an issue with.

Small value loans given at short notice are, by their nature, going to involve risk and are going to be expensive. As an emergency source of funding they might have their place but the rapid expansion of this sector indicates, to me, that they are being used to fund unsustainable consumption by customers who, politely, are less than financially savvy.

If PDL's were only used for sensible purposes i.e. emergency one off small loans there wouldn't be sufficient business to sustain the model so whilst I might not support an outright ban I'd consider curbs on how they operate and advertise.

Wouldn't surprise me in the slightest to find PDL's turn into the next PPI.

Loughton_Monkey

wotsthat wrote: »

....If PDL's were only used for sensible purposes i.e. emergency one off small loans there wouldn't be sufficient business to sustain the model so whilst I might not support an outright ban I'd consider curbs on how they operate and advertise.

Wouldn't surprise me in the slightest to find PDL's turn into the next PPI.

Maybe they will. It cost the banks a few bob. Trouble is, these PDL's are a 'one trick pony' and could only ever compensate 20 pence in the £. If that.

Out of sinister curiosity, I would just love to see the full finances of a dozen or so typical customers.

For convenience, I use credit cards extensively. The full balance gets paid on DD, so I never pay a penny interest. I even get cashback and airmiles! But if I imagine I was in temporary difficulties. Perhaps locked up all my cash in fixed rate savings... then I would simply grasp one of my credit cards - giving me up to 51 days free credit and then (if necessary) cough up the 17.9% APR.

I can't believe all these people (a) don't have credit cards, or (b) they do, but every single one is permanently 'maxed out'.

Totally inexplicable!

markharding557

Wonga and their ilk:mad: are degenerate scum who prey on those in financial difficulty, people who should not be allowed to borrow what they can't afford.:(
They advertise extensively around programs like Jeremy kyle in order to specifically target these people.:mad:

I have never voted conservative in my life but if the government would outlaw these scum-suckers, they would earn my gratitude and vote for a very long time.

I have seen friends get into a mire with these legal loan sharks - not nice.:(

chewmylegoff

markharding557 wrote: »

people who should not be allowed to borrow what they can't afford

What else should people not be allowed to do?

Let's ban debt, alcohol, cigarettes, contact sport, trans fats, cars, gambling and ice cream. Then we will all be happy. Best not let anyone eat lettuce either as it contains carcinogens.

markharding557

chewmylegoff wrote: »

What else should people not be allowed to do?

Let's ban debt, alcohol, cigarettes, contact sport, trans fats, cars, gambling and ice cream. Then we will all be happy. Best not let anyone eat lettuce either as it contains carcinogens.

You are getting rather silly!

I would not ban any of these things, i like lettuce and ice cream (not together) and contact sport.

I was talking about lenders who target people who would be rejected by most other lenders and rightly so.

AlexLK

Taken from my debt-free diary in relation to Wonga:

".... I heard an advertisement for "Wonga" on the radio this morning and for the first time ever I didn't quietly smirk, wondering how stupid one must be to take out one of these pay-day loans, I actually felt angry this company was praying on those much less fortunate than I."

Frankly, I am disgusted this company carries on growing whilst praying on some of the truly vulnerable.

Loughton_Monkey

chewmylegoff wrote: »

....Let's ban debt, alcohol, cigarettes, contact sport, trans fats, cars, gambling and ice cream. Then we will all be happy. Best not let anyone eat lettuce either as it contains carcinogens.

I think you've aimed this directly at me! You know my penchant for a G&T and yet you ban it! I drink it purely for medicinal purposes: to stave off malaria and keep sunstroke at bay. The alcohol is purely incidental and merely there to sterilise my gullet for the tonic.

You can leave cigarettes in if you like, I only smoke cigars.

As for Wonga, as odius as their business is, they do not need banning since the Archbishop has vowed to drive them out of business. [Frankly, I think he stands more chance of parting the Red Sea, but he makes a living spouting nonsense.]

There is one good side effect of Wonga. I rather frown on the typical customer of them, and wouldn't want to live next door to one. Given that (as I understand it) virtually no lender will give a mortgage to payday borrowers, this nicely removes the possibility of them buying a house down my street.

ps: two things you forgot from your ban list: Chewing gum and Insurance comparison adverts.

chewmylegoff

markharding557 wrote: »

You are getting rather silly!

I would not ban any of these things, i like lettuce and ice cream (not together) and contact sport.

I was talking about lenders who target people who would be rejected by most other lenders and rightly so.

The point is, when do you stop taking people's decisions for them? No one forced people to borrow money from Wonga or any of the other payday lenders.

So, if people are to be banned from borrowing money from Wonga, what else will you also ban them from doing? At what point do they have to take responsibility for their own actions?

Alcohol is at least as much of a blight upon society as payday lending, so is that out the door? Or only for the people who don't know best?

markharding557

So, if people are to be banned from borrowing money from Wonga, what else will you also ban them from doing? At what point do they have to take responsibility for their own actions?

At no point am i advocating we should have a nanny state.
I think there should be better regulation to ensure responsible lending.
Wonga is not a responsible lender because they purposely target people who are already in financial difficultly.

grizzly1911

Loughton_Monkey wrote: »

ps: two things you forgot from your ban list: Chewing gum and Insurance comparison adverts.

Plus Strictly and all the other similar themed and presented carp that infects our "free" to air screens.