Wonga on brink of collapse

jonesMUFCforever

If Wonga one of the market leaders goes bust then others in the same market may follow?
Where will the uncreditworthy go then? - Back to back street money lenders?

[Deleted User]

^ exactly at least wonga for all their many faults never knee capped anybody.

dealer_wins

jonesMUFCforever wrote: »

If Wonga one of the market leaders goes bust then others in the same market may follow?
Where will the uncreditworthy go then? - Back to back street money lenders?

They may have to cut back on Iphones, Nike trainers, 5 takeaways a week and £400 games consoles for their benefit babies!!

tonycottee

dealer_wins wrote: »

They may have to cut back on Iphones, Nike trainers, 5 takeaways a week and £400 games consoles for their benefit babies!!

Do you actually know anybody that has used Wonga? Or have you been reading the Daily Mail again? Although if it makes you feel superior to people that have taken out payday loans, knock yourself out.

JIL

iolanthe07 wrote: »

You blame the lone company for the problem.


I think there's more than one of them!

I see what you did there, lone company or loan company.

JIL

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 think you mean loan companies?

I know people who have taken pay day loans, they have been absolutely desperate. Robbing Peter to pay Paul. But what really made me think was when one told me, she had no money left, and no more funds on her small overdraft, if she did go into her unauthorised overdraft the bank charges and fees would be £75. If she took out the payday loan and repair it in a week's time it would be cheaper.
But once this cycle starts it's difficult to get out of and the monthly borrowing is difficult to break.

[Deleted User]

dealer_wins wrote: »

They may have to cut back on Iphones, Nike trainers, 5 takeaways a week and £400 games consoles for their benefit babies!!

Do you live on the same planet as the rest of us?:mad:

dealer_wins

tonycottee wrote: »

Do you actually know anybody that has used Wonga? Or have you been reading the Daily Mail again? Although if it makes you feel superior to people that have taken out payday loans, knock yourself out.

Yep, have idiot friends and neighbours who are destined to be p1ss poor and have a !!!!py lifestyle until the day they die due to their general stupidity and/or laziness!

aNom

venison wrote: »

Do you live on the same planet as the rest of us?:mad:

Unfortunately, yes, they do...

T-G-C

Wonga along with other companies that charge excessive interest on their loans will end up in the same position. For those who are clear minded, can afford the interest and know for certain the repayments will be affordable for the entire duration; their product is the perfect resource for unexpected costs, but for the thousands of vulnerable people out there or those who are uneducated about the risks of such high-cost borrowing are the people who come out the worst.

Although Wonga haven't forced people to use their service, advertising and wording can be a powerful marketing resource to attract customers from all walks of life, whether it be on the breadline and taking the cash to feed their children or those who simply need a little cash boost until the following month.

All the changes we've seen Wonga and similar companies make since 2014 have not been out of care or concern for their customers, but like all businesses, under a legal requirement. Their recent promotion offering 5% cashback on interest is another example of clever marketing to attract customers from left, right and center.

I feel it would not be a bad thing for them to discontinue out of financial bust. What was once the perfect business model for making over triple their investment back in loans (pre interest-cap) has now become a tired and overused market preying on the vulnerable and those seeking a quick solution to cash flow difficulties.

My personal experience with Wonga is minor and have repaid past loans before even the first instalment was due, however others out there are not so fortunate. Their lending criteria now is much harsher than prior to the new regulations and in essence, this is what has put them in this position, as the amount of loans they issue now compared to 2012 would be significantly less and significantly less interest made, due to the cap. Even with the cap, the interest is extortionate but like I said, it wouldn't be devastating to see them closedown.