Wonga profits leap 35% as demand for loans increases

Thrugelmir

markharding557 wrote: »

Wonga is not a responsible lender because they purposely target people who are already in financial difficultly.

So what's your alternative? For those that genuinely struggle to get by. Who don't receive a full wage packet because their employer only pays them SSP.

How much of your annual income would you give up to help people in need?

chewmylegoff

Thrugelmir wrote: »

So what's your alternative? For those that genuinely struggle to get by. Who don't receive a full wage packet because their employer only pays them SSP.

How much of your annual income would you give up to help people in need?

the alternative is that people go to loan sharks who charge more and when you don't pay them then they don't usually try to collect by legal means. that would be one consequence of banning payday lenders.

as long as people want to borrow money at pretty much any cost then businesses (legal or not) will service that demand.

Loughton_Monkey

Thrugelmir wrote: »

So what's your alternative? For those that genuinely struggle to get by. Who don't receive a full wage packet because their employer only pays them SSP.

How much of your annual income would you give up to help people in need?

I don't get a penny wages, but contribute hansomely to HMRC to build up their £112 Billion Welfare bill. So the answer to the last bit is "not a penny more".

I think there are literally billions of people all over the world who 'genuinely struggle' and within my own definition of 'genuine' would be sentiments of 'opportunity' or 'access to education' which a lot of these billions don't enjoy. Even when adjusting for the price of food, warmth, clothes, and 'stuff' to local conditions, the billions of people to whom I am referring would look on the poorest UK resident as relatively a 'millionnaire' by their own standards....

We are (or have been) a very wealthy country, and we continue to shovel extremely serious amounts of money back to the so-called 'poor'. The vast, vast, majority have had the opportunities and access to education, health etc. and still fail to do anything for themselves - like for example saving up a small bit to tide them over temporary hurdles. It is the same inertia, or complete lack of common sense, and pattern of behaviour that got them into a 'hand to mouth' situation in the first place.

Personally I'd be happy to see welfare budgets slashed wholesale, with a large proportion of the savings going, instead, to charities who could target much more help to the fraction of 'genuine' cases by a realistic definition.

People say "There's absolutely no way I could save up £100 in 6 months" then go and contradict themselves by taking a Wonga loan requiring them to 'save up' £137.15 in 30 days! To give these people any sympathy whatsoever is ludicrous. To give them money is even more so.

wotsthat

chewmylegoff wrote: »

the alternative is that people go to loan sharks who charge more and when you don't pay them then they don't usually try to collect by legal means. that would be one consequence of banning payday lenders.

as long as people want to borrow money at pretty much any cost then businesses (legal or not) will service that demand.

The muppets I know that have used Wonga wouldn't dream of using a loan shark if pay day loans weren't available. Instead they'd probably have to have a Saturday night in.

I find it bemusing that people need to be protected from the evils of IO mortgages but not pay day loans.

Graham_Devon

wotsthat wrote: »

I find it bemusing that people need to be protected from the evils of IO mortgages but not pay day loans.

Why?

I'd be against IO Wonga loans too.

Fishingtime

ILW wrote: »

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

The problem is that if you are poor and need money then it does not matter if you are stupid or not.
Not everyone has the means to get money from the bigger lenders

wotsthat

Graham_Devon wrote: »

I'd be against IO Wonga loans too.

I think a significant proportion of Wonga customers treat their loans as IO. Wonga love 'em!

grizzly1911

wotsthat wrote: »

I think a significant proportion of Wonga customers treat their loans as IO. Wonga love 'em!

Once someone doesn't pay in in full I doubt the interest is as big a problem as the fees for the letters and reminders, dishonoured payments, days of the week with a letter A etc.

chewmylegoff

wotsthat wrote: »

The muppets I know that have used Wonga wouldn't dream of using a loan shark if pay day loans weren't available. Instead they'd probably have to have a Saturday night in.

I find it bemusing that people need to be protected from the evils of IO mortgages but not pay day loans.

I don't think people should be protected from interest only mortgages (except in the sense that the taxpayer in general should be protected from the consequences of having to pick up the tab for irresponsible lending practices - i.e. protection should be from the financial stability angle not a consumer protection point of view). People should be free to make their own decisions, and should have to deal with the consequences of those decisions.

kabayiri

Thrugelmir wrote: »

So what's your alternative? For those that genuinely struggle to get by. Who don't receive a full wage packet because their employer only pays them SSP.

How much of your annual income would you give up to help people in need?

In an ideal world I hoped Credit Unions would take off, like they have elsewhere. I even put £10K into my local one.

People need to build good credit standings in their local community. "Computer says no" is in danger of alienating whole segments of the populace.

It's okay though. The same credit scoring agencies who judge you will sell you Credit Expert reports!

Trebles all round!