Wonga causing damage 'from beyond the grave'

Willing2Learn

The finances of 10,500 borrowers are being "damaged from beyond the grave" by collapsed payday lender Wonga, according to a committee of MPs.
Wonga fell into administration in August last year, with these customers awaiting ombudsman rulings on whether they were mis-sold loans.
Many have given up hope of redress, and the Treasury Committee said their cases had been "cast aside".

Full story @ BBC News

Ray_Singh-Blue

So people who took out a payday loan are upset because the company went bust, leaving them with nothing.

Wait, what?

They had nothing in the first place, which is why they took out a loan.

No comprendo

dealer_wins

Wonga didnt sell loans, the had no sales team calling people. They gave loans to people who APPLIED for them.

So how they were missold is beyond me!!

Willing2Learn

Personally, I think it is six of one, half dozen of the other. Wonga did loan irresponsibly to people who clearly would be unable to repay, which they would have known if they had done the necessary affordability checks. Whilst at the same time, customers borrowed irresponsibly, knowing they were digging a deeper hole for themselves. I feel that it was clearly a flawed business model, to lend to vulnerable people who would be unable to honour their contract...

Clive_Woody

So people who knew they would not be able to repay a loan, but applied for a loan anyway, then did not repay the loan, would like compensation for taking out that loan....and some people feel the government (i.e. the tax payer) should cover that compensation now the loan company has gone bust.......seriously?

So they got free money and would now like some more please. Am I too late to sign up?

jpsartre

dealer_wins wrote: »

Wonga didnt sell loans, the had no sales team calling people. They gave loans to people who APPLIED for them.

So how they were missold is beyond me!!

That's like saying Tesco doesn't sell milk because they have no sales team calling people.

Clive_Woody

jpsartre wrote: »

That's like saying Tesco doesn't sell milk because they have no sales team calling people.

How many people have accused Tesco of mis-selling them milk?

anfieldred

Texting/emailing people regularly telling them their eligible for another loan etc. when they know that the people taking them were already in a desperate situation.

System

anfieldred wrote: »

Texting/emailing people regularly telling them their eligible for another loan etc. when they know that the people taking them were already in a desperate situation.

Nope, still not seeing how that forces someone to take out a loan they know they can't afford.

anfieldred

Tarambor wrote: »

Nope, still not seeing how that forces someone to take out a loan they know they can't afford.

Haven't said it forces anyone. But, if you're already on your !!!! money wise and have gone for a payday loan, and they offer you more, in most cases those customers are going to take it.

Most high street banks screen/check you properly - some even tell you before you apply if you'll get rejected... most PDL companies just take whatever you say as fact without checking it's affordable or if it will put the applicant further into debt.

I didn't take any personally - it was my wife who did loads of loans from Wonga without my knowledge, and it did screw us over and probably will do for a few years, I'm not saying she's blameless by any means, but they repeatedly offered new loans or top ups.

John_G_Jones

Let’s face it, the sort of people who’d borrow from Wonga would only spend the combo on magic beans as soon as they got it so it’s no great loss to them.