Si Posted October 9, 2012 Share Posted October 9, 2012 Using some of the logic on this thread, is it possible for anyone to prey on the desperate and vulnerable? Illegal loan sharks? Dodgy door-to-door double glazers knocking on old folks doors? Confidence tricksters? Drug dealers? Protection rackets? Gang masters? People traffickers? Crooked landlords? Pimps? It's easy to say "Oh, well, they shouldn't have got involved in it", not so much when you're desperate, have mental health problems or are semi-literate. It's alright they won't be able to read the repossession notices. Link to post Share on other sites More sharing options...
jdckelly Posted October 9, 2012 Share Posted October 9, 2012 These APR rates being banded about are utterly irrelevant as they don't lend money over a year, if you were to borrow 100 from them, in a weeks time you would need to pay back 110, that's equivalent of 14,000% APR, but you would never pay that interest because it is a short term loan. How is the APR irrelevant? Somebody under 25 gets £56.25 a week and would have to pay almost 20% of his/her weekly benefit in interest alone using the figures you use. It's not irrelevant but it's a pretty misleading way to compare them to other lenders, because it's the representative rate as extended over a year. Which payday lenders don't do. Saw an analogy elsewhere that said if you borrowed £20 from a mate and paid them it back a week later and also bought them a pint for £3.50 to say thanks, you probably wouldn't think anything of it. But calculated as an APR it would be horrendous. According to their website Wonga would charge you £7.26 for the same example, so maybe two pints. Wonga charge £7 on a £20 loan for a week? that is fucking ridiculous. £7.26 to be precise Link to post Share on other sites More sharing options...
Guest bimpy474 Posted October 9, 2012 Share Posted October 9, 2012 Well if we get into the Champions League and win it because of Wonga. Fuck the poor Link to post Share on other sites More sharing options...
Tiresias Posted October 9, 2012 Share Posted October 9, 2012 Are we entirely sure Ashley hasn't just taken out a 3 year Wonga loan for £15m? :frantic: Link to post Share on other sites More sharing options...
Dave Posted October 9, 2012 Share Posted October 9, 2012 These APR rates being banded about are utterly irrelevant as they don't lend money over a year, if you were to borrow 100 from them, in a weeks time you would need to pay back 110, that's equivalent of 14,000% APR, but you would never pay that interest because it is a short term loan. How is the APR irrelevant? Somebody under 25 gets £56.25 a week and would have to pay almost 20% of his/her weekly benefit in interest alone using the figures you use. It's not irrelevant but it's a pretty misleading way to compare them to other lenders, because it's the representative rate as extended over a year. Which payday lenders don't do. Saw an analogy elsewhere that said if you borrowed £20 from a mate and paid them it back a week later and also bought them a pint for £3.50 to say thanks, you probably wouldn't think anything of it. But calculated as an APR it would be horrendous. According to their website Wonga would charge you £7.26 for the same example, so maybe two pints. Wonga charge £7 on a £20 loan for a week? that is fucking ridiculous. £7.26 to be precise Aye, that's what I wrote. Link to post Share on other sites More sharing options...
BlueStar Posted October 9, 2012 Share Posted October 9, 2012 Using some of the logic on this thread, is it possible for anyone to prey on the desperate and vulnerable? Illegal loan sharks? Dodgy door-to-door double glazers knocking on old folks doors? Confidence tricksters? Drug dealers? Protection rackets? Gang masters? People traffickers? Crooked landlords? Pimps? It's easy to say "Oh, well, they shouldn't have got involved in it", not so much when you're desperate, have mental health problems or are semi-literate. It's alright they won't be able to read the repossession notices. Well this is kind of another point, isn't it, there are much better solutions out there such as credit unions, but the people who need them don't find out about them because credit unions can't spend £24m advertising it. If you don't have the internet etc to do your research and you desperatley need £50 to pay someone who's threatening you with whatever, the only place you might know to go to is one of these guys. If you're a rich chap who owes £50,000, you can probably have your accountant negotiate with the person making the threats and probably point out these threats aren't legal, you can get advice, you can get a loan at a ore reasonable rate, you still have day to day living expenses covered. If you've got literally nowt, you'll probably end up at one of these guys, and in those 5 minutes they're not going to find out if you're just some wide-boy who can't wait to buy the new FIFA or if you have a mental age of 12, don't know what you're getting yourself into and have no idea how you'll be able to pay it back with the amount of added interest. Link to post Share on other sites More sharing options...
Greg Posted October 9, 2012 Share Posted October 9, 2012 If you take a loan of £1 for a day you pay back £6.56! Link to post Share on other sites More sharing options...
Guest jonlane86 Posted October 9, 2012 Share Posted October 9, 2012 The thing that fascinates me about this whole situation is people ultimately choose to take out a "payday loan". The way people are going on you'd have thought we'd signed a sponsorship deal with the Nuclear Programme for Iran. My main concern is around have we taken a cut in sponsorship funding but then I can't see any way Ashley would decide to do that. However I do think that the board have decided to u-turn on Stadium Sponsorship and in order to get buy in for the new sponsors and to not look like they've u-turned they've arranged the press release for today. Link to post Share on other sites More sharing options...
cp40 Posted October 9, 2012 Share Posted October 9, 2012 If you take a loan of £1 for a day you pay back £6.56! fuck off , no way? Link to post Share on other sites More sharing options...
Dave Posted October 9, 2012 Share Posted October 9, 2012 If you take a loan of £1 for a day you pay back £6.56! Small quantities cost more tbf. Link to post Share on other sites More sharing options...
jdckelly Posted October 9, 2012 Share Posted October 9, 2012 These APR rates being banded about are utterly irrelevant as they don't lend money over a year, if you were to borrow 100 from them, in a weeks time you would need to pay back 110, that's equivalent of 14,000% APR, but you would never pay that interest because it is a short term loan. How is the APR irrelevant? Somebody under 25 gets £56.25 a week and would have to pay almost 20% of his/her weekly benefit in interest alone using the figures you use. It's not irrelevant but it's a pretty misleading way to compare them to other lenders, because it's the representative rate as extended over a year. Which payday lenders don't do. Saw an analogy elsewhere that said if you borrowed £20 from a mate and paid them it back a week later and also bought them a pint for £3.50 to say thanks, you probably wouldn't think anything of it. But calculated as an APR it would be horrendous. According to their website Wonga would charge you £7.26 for the same example, so maybe two pints. Wonga charge £7 on a £20 loan for a week? that is fucking ridiculous. £7.26 to be precise Aye, that's what I wrote. missed that because i went to check what it was for myself Link to post Share on other sites More sharing options...
Beren Posted October 9, 2012 Share Posted October 9, 2012 These APR rates being banded about are utterly irrelevant as they don't lend money over a year, if you were to borrow 100 from them, in a weeks time you would need to pay back 110, that's equivalent of 14,000% APR, but you would never pay that interest because it is a short term loan. How is the APR irrelevant? Somebody under 25 gets £56.25 a week and would have to pay almost 20% of his/her weekly benefit in interest alone using the figures you use. It's not irrelevant but it's a pretty misleading way to compare them to other lenders, because it's the representative rate as extended over a year. Which payday lenders don't do. Saw an analogy elsewhere that said if you borrowed £20 from a mate and paid them it back a week later and also bought them a pint for £3.50 to say thanks, you probably wouldn't think anything of it. But calculated as an APR it would be horrendous. According to their website Wonga would charge you £7.26 for the same example, so maybe two pints. Wonga charge £7 on a £20 loan for a week? that is fucking ridiculous. £7.26 to be precise Aye, that's what I wrote. Don't know why that's so funny :lol: Link to post Share on other sites More sharing options...
cp40 Posted October 9, 2012 Share Posted October 9, 2012 why dont daft fuckers get an interest free credit card? Link to post Share on other sites More sharing options...
Beren Posted October 9, 2012 Share Posted October 9, 2012 why dont daft fuckers get an interest free credit card? Think the Wonga selling point is that it delivers the money faster, and it possibly has a lower threshold for creditworthiness? Link to post Share on other sites More sharing options...
nuneaton Posted October 9, 2012 Share Posted October 9, 2012 If you take a loan of £1 for a day you pay back £6.56! surely not! Link to post Share on other sites More sharing options...
nuneaton Posted October 9, 2012 Share Posted October 9, 2012 just read above reply Link to post Share on other sites More sharing options...
Guest Posted October 9, 2012 Share Posted October 9, 2012 These APR rates being banded about are utterly irrelevant as they don't lend money over a year, if you were to borrow 100 from them, in a weeks time you would need to pay back 110, that's equivalent of 14,000% APR, but you would never pay that interest because it is a short term loan. How is the APR irrelevant? Somebody under 25 gets £56.25 a week and would have to pay almost 20% of his/her weekly benefit in interest alone using the figures you use. It's not irrelevant but it's a pretty misleading way to compare them to other lenders, because it's the representative rate as extended over a year. Which payday lenders don't do. Saw an analogy elsewhere that said if you borrowed £20 from a mate and paid them it back a week later and also bought them a pint for £3.50 to say thanks, you probably wouldn't think anything of it. But calculated as an APR it would be horrendous. According to their website Wonga would charge you £7.26 for the same example, so maybe two pints. Wonga charge £7 on a £20 loan for a week? that is f***ing ridiculous. It's no more a rip off as say, a £7 taxi journey when you could get the bus or metro to the same place for £3. Link to post Share on other sites More sharing options...
Mick Posted October 9, 2012 Share Posted October 9, 2012 It's not irrelevant but it's a pretty misleading way to compare them to other lenders, because it's the representative rate as extended over a year. Which payday lenders don't do. Saw an analogy elsewhere that said if you borrowed £20 from a mate and paid them it back a week later and also bought them a pint for £3.50 to say thanks, you probably wouldn't think anything of it. But calculated as an APR it would be horrendous. According to their website Wonga would charge you £7.26 for the same example, so maybe two pints. From what I've read people are taking out loans with one company to pay off the other so the APR is changing from one company to the other, people are still paying it. Link to post Share on other sites More sharing options...
BlufPurdi Posted October 9, 2012 Share Posted October 9, 2012 Using some of the logic on this thread, is it possible for anyone to prey on the desperate and vulnerable? Illegal loan sharks? Dodgy door-to-door double glazers knocking on old folks doors? Confidence tricksters? Drug dealers? Protection rackets? Gang masters? People traffickers? Crooked landlords? Pimps? It's easy to say "Oh, well, they shouldn't have got involved in it", not so much when you're desperate, have mental health problems or are semi-literate. Link to post Share on other sites More sharing options...
Fugazi Posted October 9, 2012 Share Posted October 9, 2012 http://www.itv.com/news/update/2012-10-09/newcastles-muslim-warned-against-wearing-wonga-sponsored-shirts/ Link to post Share on other sites More sharing options...
WarrenBartonCentrePartin Posted October 9, 2012 Share Posted October 9, 2012 http://www.itv.com/news/update/2012-10-09/newcastles-muslim-warned-against-wearing-wonga-sponsored-shirts/ edit: f*** off Fugazi Link to post Share on other sites More sharing options...
Fugazi Posted October 9, 2012 Share Posted October 9, 2012 http://img.ffffound.com/static-data/assets/6/354765448e168bb38997f655c8f100d4fb5aeb10_m.gif Link to post Share on other sites More sharing options...
Benwell Lad Posted October 9, 2012 Share Posted October 9, 2012 why dont daft fuckers get an interest free credit card? I wish someone with your common sense had been running our country's economy during the last decade instead of Gordon fucking Brown and then Osborne. Link to post Share on other sites More sharing options...
Jagten Posted October 9, 2012 Share Posted October 9, 2012 http://www.itv.com/news/update/2012-10-09/newcastles-muslim-warned-against-wearing-wonga-sponsored-shirts/ "The Islamic system is based on a non-interest-based system of transaction," he added. Not just Wonga then, is it? Link to post Share on other sites More sharing options...
Dave Posted October 9, 2012 Share Posted October 9, 2012 Still don't quite get how advertising their perfectly legal business is preying on the vulnerable. I'd be interested in seeing some stats on where the majority of the money they lend goes but I would imagine that's not freely available. Their service, the amounts they lend and the high charges they levy literally couldn't be any easier to understand; what are they concealing or misleading people with? If the adverts are inappropriate then the ASA should be doing something about it btw. Otherwise, people clearly believe the charges are acceptable or they wouldn't be agreeing to them. Or are we saying that people are so fucking dense that they need protecting from their own thought processes and decisions? Wonga and the like are obviously charging as much as people are willing to pay. Ultimately what's the difference between doing what they're doing and Apple charging £529 for a phone that costs them £129 to make? Or Nike charging £100 for a pair of trainers that costs them £5 to make? Where do we draw the line between a business making a fair profit and being immoral? Link to post Share on other sites More sharing options...
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