MSE News: Wonga busted by the FCA: 330,000 to have their loan wiped

Thrugelmir

aardvaak wrote: »

The companies fault was to have excessive charges and interest rates.

.

That's not the issue. The interest and charges are commercially justifiable. ( Media commentary shows a total lack of understanding as to how a business operates and the costs it incurs). The point is that some people should never have been lent the money in the first place. As was never affordable in the first place.

A defining moment in the lending markets. With this action being the tip of the iceberg.

aardvaak

Thrugelmir wrote: »

That's not the issue. The interest and charges are commercially justifiable. ( Media commentary shows a total lack of understanding as to how a business operates and the costs it incurs). The point is that some people should never have been lent the money in the first place. As was never affordable in the first place.

A defining moment in the lending markets. With this action being the tip of the iceberg.

The borrowers should not of been offered the money but the still had it.

Done

Spineless regulators not having the balls to close these utter parasites down, indebted folk paying the debts of other indebted folk, directors of Wonga should be locked up and have their assets confiscated.

[Deleted User]

Once_bitten wrote: »

To the people crowing about getting debts wiped. The reason this is happening is you should never have been loaned it in the first place. You will never ever get a credit from legitimate sources again

"""Correct

Monkeyballs

Two sides of the arguement;

Wonga should have been more thorough in their checks, but the product to an extent is designed to help those who would fail those checks anyway - because of this there is an inherently increased risk of the customer failing/struggling to repay, hence the high interest.

Customers go to Wonga because mainstream lenders for one reason or another (reasonable or not) would not offer credit to them, offer a theoretically more expensive alternative (Eg. unauthorised overdraft), or do not have a suitable product to offer anyway.

Both parties have responsibility to take, personally I believe that any creditor should be more stringent in their checks so the majority of the responsibility should lie with them - yes, customers should take responsibility but some are more honest/reliable than others... If you introduce more stringent checks then I would imagine 90% and more of all custom would be lost which would likely reduce the market significantly.

Personally, I would rather see banks offering very short term loans which would have interest rates in-line with their regular lending rates available to their customers but it's unlikely to happen as it probably just isn't worth it for the banks to do so - very little money for the same effort it would take to loan someone say £10+ which is much more profitable... Until this happens then Payday lending will go on unfortunately...

That's what I think anyway

Aardvark I completely agree - if you borrow it then you should repay it with interest, just not excessive amounts

MB

James_B.

Done wrote: »

Spineless regulators not having the balls to close these utter parasites down, indebted folk paying the debts of other indebted folk, directors of Wonga should be locked up and have their assets confiscated.

So if they are closed down, what do you suggest people do who formerly used them?

aardvaak

These borrowers have received money from the company so I think they should have to repay all or most of the original amount even if that is at nil or a very low interest rate otherwise they are getting off scot free.

If the the company is at fault of over charging charges and rates the loss of that should be enough for them to sufer.

HW1979

Are wonga going to repay previous customers as well ? I had two previous loans and fell into arrears ! Had the letters and loads of interest, so it would be nice to reclaim. Anyone have any idea ?

molerat

Breaking News .......... McDonalds to refund Big Macs they sold to fat !!!!!!!s !!

Thechief_2

A bit like the last comment i had a loan with them in 2009 in the end they lent me nearly a grand which was well over what i could afford(i know i was irresponsible taking it)if theyd checked my credit file it was in an extremley poor state and i also had about 8 other payday loans going at the same time(i got sucked in with the rollovers)so for someone who only was on 15k a year i would think i would come in under this category!!! However my debt was passed over to a debt company and reading between the lines they are only doing this for current customers??? How can that be fair??? I suffered in exactly the same way and even had to pay the debt back via the debt company so shouldnt i be refunded??? Any thoughts??? And yes before anyone says it i was totally irresponsible but this was at a time in my life when a lot of things were going wrong!!! I can safely say i learnt my lesson and would advise anyone thinking of taking a payday loan these days then DONT!!! The charges are ridiculous and they will suck you in with there rollovers etc and before you know where you are you'll be in a ten times worse position than you were in the first place!!!