Wonga on brink of collapse

jimbo26

I was going to lend them some money to bail them out at 14560% and had to be paid back at the end of the month.

Soneji

Any thoughts as to what happens to complaints about irresponsible lending - and the debt - made prior to the collapse but with no response before the administration was announced?

T-G-C

Soneji wrote: »

Any thoughts as to what happens to complaints about irresponsible lending - and the debt - made prior to the collapse but with no response before the administration was announced?

Complaints will continue to be accepted, provided Wonga is still under regulation of the Financial Conduct Authority, which has to continue to apply until all existing loans are paid in full. There is no need for them to retain their licence after the last customer has fulfilled their credit agreement.

However though, complaints that have not already received a promise of reimbursement will be at the back of the queue when it comes to paying out through the administrator. Secured creditors such as banks etc. will be priority and unsecured creditors such as due reimbursements from customer complaints will be the last and least likely to be paid. If a complaint has already received a response and a guarantee of financial compensation, it should generally be prioritized ahead of new / unaddressed complaints.

okidoodle

Red-Squirrel wrote: »

Where can you get free second hand stuff? Where can you get any second hand stuff for the amount of cash that people on benefits and zero hours contracts might realistically have immediately available?

As I explained in an earlier post, there are social enterprises I know of (and local social services and other organisations know about them too) that will give and deliver essential white goods and furniture for free or very very cheap to people in need. They make their money by marking up the price to the rest of us and selling non-essential bits and pieces like bric a brac or more ornamental furniture.

bxboards

buythedip wrote: »

You must live in a different Britain to me with high rents and inadequate housing, the proliferation of zero hours contracts and surging food bank use.

Or maybe you thought you were commenting on the Daily Mail website?

Sounds like it for sure - no food banks here, good employment levels, monthly rent of 350 a month very do-able, house prices around 3 to 4x income. But then I didn't choose to live in an area I can't afford, and look to blame other people. Look if someone can come from Poland or Romania and make a go of it, things can't be that bad here.

Don't read the Daily Mail, last time I looked at it, the viewpoints expressed where pretty much 180 opposite to my own.

Red-Squirrel_2

bxboards wrote: »

Sounds like it for sure - no food banks here

What area is that? I bet there's one not too far away.

Red-Squirrel_2

okidoodle wrote: »

As I explained in an earlier post, there are social enterprises I know of (and local social services and other organisations know about them too) that will give and deliver essential white goods and furniture for free or very very cheap to people in need. They make their money by marking up the price to the rest of us and selling non-essential bits and pieces like bric a brac or more ornamental furniture.

I am aware of organisations like that near me, but they tend to give things to people who are being housed after living rough, or people fleeing abuse. They are quite selective to ensure the absolute neediest and most vulnerable get help, I don't think just a broken washing machine that needs replacing would usually qualify.

T-G-C

Wonga have had terrible business practices in the past, most of which had affected millions of people and their families. For that, we will not forget and seeing their comeuppance has not been in dispute at all, but it is important to remember that real people, most of whom had no influence on the businesses affairs, are now going to face unemployment.

These people need to find another employer and for the time being, might face financial woes in their own household, some of which could include children.

We should not be celebrating the fact that this is happening or seeing it as revenge on them, but taking peace at the fact that a high-profile example has been made out of a business like Wonga whom operated with customer welfare in black and white and saw profit in color.

There is no doubt that this outcome will rattle other companies within the same sector and with the most bleak of hope, cause noticeable reform in their approach to consumer welfare and pride themselves in helping those in need with responsible practices and reasonable interest, which allows them to make a profit without putting people in a worsened position than before approaching them.

It has to be said however, although too little, too late, in the last few years of their trading, Wonga were tamed and due to an advanced upgrade to their automated decision making, significantly reduced the likelihood of someone with a high margin of debt being accepted for a loan product. Admittedly, this was done out of regulatory requirement as opposed to genuine concern for the welfare of their future customers. When the market was under-regulated and Wonga were at their prime, the company's profit margins were on fire and once this had been extinguished by the Financial Conduct Authority through new requirements, this rapidly fell over time and peaked at their collapse in August.

On an unrelated note; does anyone find it posthumous that the administrators (assuming now have management of the site) have not removed the 5% cashback advertising or other site content such as lending sliders? It must either be that this isn't on their list of priorities right now or wish to retain it to prevent existing customers from panicking. A plain homepage with the notice of administration and a reduced-functionality login for existing loan management is probably the best thing for them to do. I can't see them issuing the cashback now, although have advised those who are eligible to submit it as an unsecured creditor claim - and we all know what that entails when the money pot runs out.

badmemory

I suspect that this Wonga thing may just be the beginning & may well land up coming under the heading of "be careful what you wish for". As far as I know they never broke anyones legs or escorted a pensioner to the PO to collect their pension or took anyones CB book etc etc. I definitely do not like them & thankfully will never feel the need or be in the position to use them but if all the payday loan companies, which at least have some regulation, disappear then what are people left with. Because people will find a way to get money as they always have done.