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Church Invest In Wonga

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I haven't looked into it much, but are Wonga that bad?

The APRs stated are a bit unfair for comparison. If you're lending £100 for a month, the admin's probably £30 (?), the default risk another £20 (?), so you'd want £150 in a month, before interest and profit. That would be APR of 1297% (I think).

How do credit unions work? They said on the radio they're limited to 26% APR. Fine if you're lending 1000s for 1 year plus, but they must lose money on small, short term lending?

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Yet another out of touch leader in a position of power. The church has a £6 billion fund to manage, 30% in property. Does he really think he can manage this without stepping on the little people?

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I haven't looked into it much, but are Wonga that bad?

The APRs stated are a bit unfair for comparison. If you're lending £100 for a month, the admin's probably £30 (?), the default risk another £20 (?), so you'd want £150 in a month, before interest and profit. That would be APR of 1297% (I think).

How do credit unions work? They said on the radio they're limited to 26% APR. Fine if you're lending 1000s for 1 year plus, but they must lose money on small, short term lending?

But it is not all lending......it is also saving, more and more people are putting their savings into a credit union to get 0% interest protected under FSCS guarantees......the same as many other places nowadays...... ;)

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Made me smile.

Bloke on the radio was saying their pensions are very aggressively invested. Shorts, hedonistic stuff etc.

Sometimes investments as showed to be the case in the past are not always open and transparent, they are wrapped into bundles that are hard to see through.......maybe it might be necessary for people now to pick through everything with a fine tooth comb to find out exactly what it is you are buying....don't want any nasty shocks now do we. ;)

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Yet another out of touch leader in a position of power. The church has a £6 billion fund to manage, 30% in property. Does he really think he can manage this without stepping on the little people?

Does he really think his organisation accrued this wealth without stepping on the little people?

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I haven't looked into it much, but are Wonga that bad?

The APRs stated are a bit unfair for comparison. If you're lending £100 for a month, the admin's probably £30 (?), the default risk another £20 (?), so you'd want £150 in a month, before interest and profit. That would be APR of 1297% (I think).

How do credit unions work? They said on the radio they're limited to 26% APR. Fine if you're lending 1000s for 1 year plus, but they must lose money on small, short term lending?

As you correctly say, a maximum limit to APRs = death of short term/low value lending. If people wish to ban loans with terms of less than x months, or for less than X amount, fair enough, but they should argue for that rather than doing it on the sly via APRs.

a 500% APR limit: Borrow £200 for a month, repay £228. Not really possible I suspect.

a 26% APR limit would as you say effectively kill terms under a year, and/or borrowings of less than four figures.

It's tricky really, because there are all manner of perverse ramifications with borrowing that might be considered prudent, eg a longer term. If someone is borrowing money to go on holiday, should they be offered a term of more than 12 months, as presumably they'll be looking to go again next year.

At the root of it are people who simply can't get by on what they earn for any number of reasons. It is good political capital to bash Wonga etc, and I don't doubt some of it is well deserved, but it's all a bit one-sided.

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Lending unsecured money to someone for a month is very low risk......lending money to someone for three years is higher risk........lending lots of small amounts to lots of people for a month is very low risk and very profitable......lending a high amount to a few people over a long period of time is higher risk. ;)

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Does he really think his organisation accrued this wealth without stepping on the little people?

He probably hasn't given it some thought.

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He probably hasn't given it some thought.

Or forgiven his predecessors.

In an ideal world, people like Wonga wouldn't exist - and if you are using them regularly you'll end up getting stiffed. But annoying adverts aside, they are a damn sight more transparent than most other banks as well as better at filtering out risky borrowers.

It would be good to see more local credit unions though. You know the kind of service building societies used to provide before they went balls deep in BTL and starting thinking they were banks.

Edited by StainlessSteelCat

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I haven't looked into it much, but are Wonga that bad?

The APRs stated are a bit unfair for comparison. If you're lending £100 for a month, the admin's probably £30 (?), the default risk another £20 (?), so you'd want £150 in a month, before interest and profit. That would be APR of 1297% (I think).

How do credit unions work? They said on the radio they're limited to 26% APR. Fine if you're lending 1000s for 1 year plus, but they must lose money on small, short term lending?

No, not that bad if it's just for a month's emergency. Terrible when someone borrows £100 for a month, owes £130 the following month and can't afford to repay it, so then borrows £130. The costs escalate dramatically month on month as people borrow ever increasing sums. Don't believe all the cosy granny adverts, repeat business is their main business and it won't be a cosy granny knocking on your door to ask you very nicely to make a repayment.

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Didnt the god bothering pious pr1cks do exactly the same thing 5 years back or so with weapons manufacturers? It was something, like that anyway.

You'd think this idiot would check his investments first before repeating the same mistakes as his beardy predecessor.

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No, not that bad if it's just for a month's emergency. Terrible when someone borrows £100 for a month, owes £130 the following month and can't afford to repay it, so then borrows £130. The costs escalate dramatically month on month as people borrow ever increasing sums. Don't believe all the cosy granny adverts, repeat business is their main business and it won't be a cosy granny knocking on your door to ask you very nicely to make a repayment.

And when people used to do overtime they could easily make up the money. These days tax credits stop you doing that.

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What really got my goad was how Wonga put a 'we support Kiva' banner at the foot of their homepage. Trying to develop some legitimacy like they're not a bunch of parasitic sc*mbags!

I emailed Kiva and got a reply but it was still on there weeks later.

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And when people used to do overtime they could easily make up the money. These days tax credits stop you doing that.

That and the fact that the last time I was actually paid for working beyond my contracted hours was 1996.

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I was under the impression that the various organised religions were a historic system of sheeple control ........an extension of the elite......with first son, getting the estate, second son, into the military, third son got religion.

The riches of the organisations directly related to exploitation of the people, what £20 for "forgiveness" - it was only £10 last week !

Hypocrites the lot of them - celebate yet abusers, the rich "poor", exploitation of the people for organisational and personal advantage.

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So you go £1 over your overdraft limit and the high street banks charge you £60 what APR is that? The banks don't like it because wonga is taking away their profitable customers. Bet they are lobbying government to get this stopped.

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  • 239 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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