Wonga goes into administration - what it means for you & Martin Lewis's view

DCFC79

ceredigion wrote: »

What ever happened to the concept of personal responsibility.

Could you say that again please ?

Ah you say personal responsibility, well oddly enough thats an concept thats bypassed alot of people.

badmemory

Let's declare a big welcome to loan sharks. If people can't borrow from banks & let's face it some of their charges were higher than the payday loan charges & they can no longer borrow from those payday loan companies where are they going to borrow from.


Much better to have a bad credit report than broken legs.


This is 2018 - no such thing as personal responsibility, there must be someone else to blame.

muhandis

As always, Martin's response was absolutely spot on. :money:

"Wonga’s demise is a cause for consumer celebration. Normally when firms go bust, the fear is diminished competition. Not here. Wonga’s payday loans were the crack cocaine of debt – unneeded, unwanted, unhelpful, destructive and addictive. Its behaviour was immoral, from using pretend lawyers to threaten the vulnerable, to pumping its ads out on children’s TV.

"It’s important to understand the payday loan industry was built on the back of marketing, not need. They sold people the concept of a need to create a demand, then pushed their products. Wonga used powerful advertising and hi-tech tools to flog a debt that, for the vast majority of its customers, was hideously over-expensive and unhelpful."

"Payday loans are for most a flawed concept. How many in dire need this payday would see such an improvement within a month that they not only not need to borrow again, but they could repay last month’s loan plus the huge interest."

[Deleted User]

I will be careful how I phrase this as it won't be a popular view on here, but since the inception of mass internet use and the evolvement of sites like this (and others) we have seen a mass of claims against banks and lenders for supposed mis-sold loans and PPI, in the case of the banks we as account holders bare the brunt of these claims.
How often do we see threads on here and other place about mis-bought loans/ppi?. The answer is rarely if ever.
Pay day loans used correctly could often work out less expensive than unauthorised overdrafts, used incorrectly they were expensive.
The only advice I can give to anyone is if you are on a low income,or have a bad credit history then join your local credit union.

TriggerHappy

ceredigion wrote: »

What ever happened to the concept of personal responsibility.

It went the same way as responsible lending???

TriggerHappy

venison wrote: »

I will be careful how I phrase this as it won't be a popular view on here, but since the inception of mass internet use and the evolvement of sites like this (and others) we have seen a mass of claims against banks and lenders for supposed mis-sold loans and PPI, in the case of the banks we as account holders bare the brunt of these claims.
How often do we see threads on here and other place about mis-bought loans/ppi?. The answer is rarely if ever.
Pay day loans used correctly could often work out less expensive than unauthorised overdrafts, used incorrectly they were expensive.
The only advice I can give to anyone is if you are on a low income,or have a bad credit history then join your local credit union.

I agree, despite having problems in the past.

Sometimes your bank sees you as being too risky a customer, despite having no debt. If you're in this position and on a low income with no savings then what do you do in times of an emergency? Fridge freezer broken? No credit for you, you'll have to save for it... It'll take six months? Tough.

It's easy to cast judgement when you don't have all the facts.

WillyWonga

The charges these claim management companies charged brought them down. Anyone with a claim in process which has not paid out have no chance of anything as will now be a creditor at the bottom of the pile. To add to it the claim mgmt companies will now come after you to recover the time they spent on the case.

Everyone was quick to criticise the payday companies but what about the claim management companies??? How many times on these bailiff programmes have you seen them coming after people for failed claims.

People saw these claims as easy money as with PPI. Now on radio here about claim management companies after flight delays, packaged bank accounts....

One bank has now started recording conversations when opening products as back up items were discussed and agreed.

Greed greed greed

AndyPix

"Wonga goes into administration"


They probly lent themselves a tenner

Samsung_Note2

muhandis wrote: »

As always, Martin's response was absolutely spot on. :money:

"Wonga’s demise is a cause for consumer celebration. Normally when firms go bust, the fear is diminished competition. Not here. Wonga’s payday loans were the crack cocaine of debt – unneeded, unwanted, unhelpful, destructive and addictive. Its behaviour was immoral, from using pretend lawyers to threaten the vulnerable, to pumping its ads out on children’s TV.

"It’s important to understand the payday loan industry was built on the back of marketing, not need. They sold people the concept of a need to create a demand, then pushed their products. Wonga used powerful advertising and hi-tech tools to flog a debt that, for the vast majority of its customers, was hideously over-expensive and unhelpful."

"Payday loans are for most a flawed concept. How many in dire need this payday would see such an improvement within a month that they not only not need to borrow again, but they could repay last month’s loan plus the huge interest."

In Response to Martins response.

Sorry but coming from someone who is incredibly wealthy that statement is complete !!!!!!!!...unless your skint and cant get a credit card and your bank wont agree an over draft,then what do you do..ask a friend to lend you £50 for a week and pay back £55 ish...chances are they will say No or some other excuse.

Ok lets ask the wealthy folk to lend money to complete strangers for high rate percent...not going to happen is it.

I used Wonga and another lender and used them to my advantage...borrowing a small amount of money over a few days (which its my understanding these firms were all about) paying back on time and you knew what was repayable before you accepted the money.

If someone borrows and cant/wont pay it back then yes thats when things went wrong..but then thats hardly the fault of Wonga,you refuse to pay back Big Donny from down the Pub and you wont be walking anywhere soon...dont pay back Wonga and you ended up owing More...big deal thats your own fault.

Martin if im in need of £100 as im short dont worry i"ll be on the email asking for a sub..obviously dont mind bunging your a fiver or even a tenner as a thank you when its paid back a week later...i"ll pm you my account details to save time when i need it,oh and please deposit into my account with in 15 minutes of asking for it...good chap.;)