Wonga on brink of collapse

Owain_Moneysaver

News reports Wonga is "on the brink of collapse" this weekend following a large number customer compensation claims.

Grant Thornton may be appointed administrators as early as next week.

https://news.sky.com/story/wonga-on-brink-of-collapse-after-customer-compensation-claims-deluge-11482720

This comes a few weeks after a £10m emergency cash injection

DCFC79

Im not surprised with the number of claims they are paying out.

Willing2Learn

:j :T :beer: :T :beer: :T :j

What happens if you borrow money now? If they go under, would you still have to repay the debt? Would the debt still be recorded with the CRAs?

ceredigion

I think the claim management co need bringing down a peg or to. You have a fully transparent product that people willingly sign up to, Then decide they have been duped and want their money back. No business could stand that. Eventually this attitude will bring down the whole system and cost us all in the long run.

Willing2Learn

ceredigion wrote: »

I think the claim management co need bringing down a peg or to. You have a fully transparent product that people willingly sign up to, Then decide they have been duped and want their money back. No business could stand that. Eventually this attitude will bring down the whole system and cost us all in the long run.

I disagree. And just for the record, I've never had a pay-day-loan. Is it not a good thing to end the cycle of irresponsible lending to vulnerable people up and down the country? If pay-day-loan companies didn't act irresponsibly in the first place, then their would have been a lot less people finding themselves with uncontrollable debts with 1291% interest.

TrickyDicky101

Willing2Learn wrote: »

I disagree. And just for the record, I've never had a pay-day-loan. Is it not a good thing to end the cycle of irresponsible lending to vulnerable people up and down the country? If pay-day-loan companies didn't act irresponsibly in the first place, then their would have been a lot less people finding themselves with uncontrollable debts with 1291% interest.

Yep you're absolutely right - instead they'd have been in hock to some loan shark who would have broken their legs instead.

'Irresponsible lending' is a product of a regulatory environment. 'Irresponsible borrowing' is a product of human nature. One is much harder to control than the other.

ceredigion

Willing2Learn wrote: »

I disagree. And just for the record, I've never had a pay-day-loan. Is it not a good thing to end the cycle of irresponsible lending to vulnerable people up and down the country? If pay-day-loan companies didn't act irresponsibly in the first place, then their would have been a lot less people finding themselves with uncontrollable debts with 1291% interest.

You blame the lone company for the problem. I blame the customer. After all nobody was holding a gun to their head saying sign on the dotted line sir.

iolanthe07

You blame the lone company for the problem.


I think there's more than one of them!

Willing2Learn

ceredigion wrote: »

You blame the lone company for the problem. I blame the customer. After all nobody was holding a gun to their head saying sign on the dotted line sir.

I am not denying that the customer has borrowed irresponsibly. It is just the Pay-Day Loan companies are targeting individuals who satisfy the definition of 'being vulnerable'. I do think there is a lesson to be learned by the PDL companies too. I do not feel it is quite as black and white as you imply...

Owain_Moneysaver

TrickyDicky101 wrote: »

Yep you're absolutely right - instead they'd have been in hock to some loan shark who would have broken their legs instead.

Which we would then have to pay for on the National Health, and through the benefits system when they couldn't work, etc.

I don't know if the administrators -- if Wonga does close -- can recall loans in faster than the originally-agreed payment schedule. If they can, that could put a lot of people in an even more difficult position.

sourcrates

Willing2Learn wrote: »

:j :T :beer: :T :beer: :T :j

What happens if you borrow money now? If they go under, would you still have to repay the debt? Would the debt still be recorded with the CRAs?

Insolvent loan companies have there portfolios aquired by companies appointed by the OR.

All original terms remain the same.