olliegog Posted October 2, 2014 Share Posted October 2, 2014 other lenders (the likes of wonga) will just step into the breach the people who use payday lenders would not get a short term loan anywhere else. kicking the can down the road again but at least it is not the taxpayers on the line this time. Quote Link to comment Share on other sites More sharing options...
shindigger Posted October 2, 2014 Share Posted October 2, 2014 Interest should have been wiped or applied at say 6% and the debt still repaid. This is every bit as bad as charging 2497% on the loan in the first place. Its ********. Won't someone think of the hazard. Quote Link to comment Share on other sites More sharing options...
shindigger Posted October 2, 2014 Share Posted October 2, 2014 I think i'll go buy 6 BUY TO LET CARS and when it goes tits someone can bail me. Quote Link to comment Share on other sites More sharing options...
EUBanana Posted October 2, 2014 Share Posted October 2, 2014 So long as Wonga doesn't get bailed they should be the ones thinking of the hazard. Quote Link to comment Share on other sites More sharing options...
Byron Posted October 2, 2014 Share Posted October 2, 2014 Who cares. So some feckless idiots were lent money by a bunch of chancers and it's gone wrong. Quote Link to comment Share on other sites More sharing options...
Ulfar Posted October 2, 2014 Share Posted October 2, 2014 Who cares. So some feckless idiots were lent money by a bunch of chancers and it's gone wrong. Good description of HTB and HTB2. Quote Link to comment Share on other sites More sharing options...
hp72 Posted October 2, 2014 Share Posted October 2, 2014 What we need is the messiah! Http://www.en.wikipedia.org/wiki/Cleansing_of_the_Temple David Ike, where are you??? The narrative of the "Cleansing of the Temple" tells of Jesus and the money changers, and occurs in all four canonical gospels of the New Testament. In this Gospel episode Jesus and his disciples travel to Jerusalem for Passover, where he expels the money changers from the Temple, accusing them of turning the Temple into a den of thieves through their commercial activities. Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted October 3, 2014 Share Posted October 3, 2014 Case study: 'I lied to get a £120 Wonga loan for a holiday' When Elliott Gomme needed money for a holiday, he turned to payday lender Wonga Openly lied to get the loan, but since when do you NEED money for holiday? Since when did a holiday become a NEED?This is the epitome of today's entitlement culture. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted October 3, 2014 Share Posted October 3, 2014 What we need is the messiah! Http://www.en.wikipedia.org/wiki/Cleansing_of_the_Temple David Ike, where are you??? The narrative of the "Cleansing of the Temple" tells of Jesus and the money changers, and occurs in all four canonical gospels of the New Testament. In this Gospel episode Jesus and his disciples travel to Jerusalem for Passover, where he expels the money changers from the Temple, accusing them of turning the Temple into a den of thieves through their commercial activities. Oh dear. So much for those gift shops in all our b***** cathedrals. Quote Link to comment Share on other sites More sharing options...
VeryMeanReversion Posted October 3, 2014 Share Posted October 3, 2014 If you were one of the Wonga borrowers (without assets) that were not covered by the write-off because you were paying up, why would you keep paying up from now on? Quote Link to comment Share on other sites More sharing options...
winkie Posted October 3, 2014 Share Posted October 3, 2014 (edited) other lenders (the likes of wonga) will just step into the breach the people who use payday lenders would not get a short term loan anywhere else. kicking the can down the road again but at least it is not the taxpayers on the line this time. There are good reasons for this.....how can lending someone £100 who can't gather £100 together from friends, family, employer, benefits or savings or anywhere else...then expecting to get £200 back from them help them.....or is it just exploiting the desperate for gain....if they can't find £100 how can they find £200 and who else will they fail to pay, to pay a payday loan company........how much of that money borrowed do you think goes to buying drink, drugs, gambling etc....how many have mental health and addiction problems? I think this is the crucial point the FCA are missing. Wonga's whole business model is to serve people who might struggle to get traditional credit. They should get a reward for this risk even if it makes some people feel uncomfortable. The FCA's whole spiel about affordability misses the point. They are not serving people....they are serving themselves....you can't extract blood out of a stone, or do they hope another will bail out the debts on their behalf?.....totally unethical practice imo........ Edited October 3, 2014 by winkie Quote Link to comment Share on other sites More sharing options...
wonderpup Posted October 3, 2014 Share Posted October 3, 2014 A poor mate of mine who worked minimum wage in a shop racked up a £20k debt because he had a penchant for Leica cameras. He's not a "victim". Though he actually did think of himself as such at the time! He knew he could never pay it back. And he didn't give a f*ck. Why would he give a f*ck? It's just a business arrangement after all- the lenders took a punt and lost their money- more fool them. Quote Link to comment Share on other sites More sharing options...
You Ain't Seen Nothing Yet Posted October 3, 2014 Share Posted October 3, 2014 (edited) If Wonga were charged interest rates on their fines at the rate they charge, they'd have to pay something like 200 trillion dollars. Edited October 3, 2014 by You Ain't Seen Nothing Yet Quote Link to comment Share on other sites More sharing options...
EUBanana Posted October 3, 2014 Share Posted October 3, 2014 Why would he give a f*ck? It's just a business arrangement after all- the lenders took a punt and lost their money- more fool them. If nobody gave a f*ck about any contract they entered into, civilisation would end pretty quickly. Quote Link to comment Share on other sites More sharing options...
winkie Posted October 4, 2014 Share Posted October 4, 2014 (edited) Except that's not the real structure, it's more like borrow £100, pay back £120 if it's within the 30 days (or whatever). If nobody gave a f*ck about any contract they entered into, civilisation would end pretty quickly.With the APR they are charging £100 soon turns into £200 or more in no time at all....£100 short this month, £120 short the following month....it wouldn't take that long before any income you did get ended up belonging all to wonga every month...legalised theft, aimed at the stupid,desperate and vulnerable.There are fair contracts and unfair contracts......unfair contracts should not be in existence.......for example a fixed price contract where they can increase the price during the fixed term but you can't move without a penalty.....read the small print there are lots of scams out there, they should be done away with. Edited October 4, 2014 by winkie Quote Link to comment Share on other sites More sharing options...
otters Posted October 4, 2014 Share Posted October 4, 2014 I would like to see a breakdown of the write off. I assume it includes a vast amount of compound interest, and not just the cash they have loaned. Quote Link to comment Share on other sites More sharing options...
SE10 Posted October 4, 2014 Share Posted October 4, 2014 Well the article quotes technology to check customer affordability but must have been ********. How fast can you get a loan there? 10seconds ? Where are the IT guys here - a short time loop and 100% approvals online? I'd assume that they take some data points from the customer (age, salary etc), verify what they can (no idea how they could verify salary automatically) and then assign a customer to some sort of 'offering profile' that defines what Wonga is willing to offer them (loan type, value and length) and at what rate. It wouldn't be hard to do at all, but does assume that the info the customer has provided is trustworthy. Of course, they could mitigate that by doing some sort of risk profiling based on information about the customer that is verifiable. Working out an algorithm that does a good job of that would be very tricky but running it on a computer once you have worked it out would be very easy even for computers from decades ago. The only challenge would be the rate of applications per second they get at peak times, but as long as you're willing to buy some hardware, load balancing is for uses like this a solved problem. Or you could use a cloud type provider that gives you effectively PAYG compute resources. Or if you've got really big workloads and deep pockets, there's big blue. Quote Link to comment Share on other sites More sharing options...
Guest eight Posted October 4, 2014 Share Posted October 4, 2014 I would like to see a breakdown of the write off. I assume it includes a vast amount of compound interest, and not just the cash they have loaned. Quite. Someone I know got into big trouble with one of these. They had a loan of £1000 which they rolled over three times, repaying the interest only at a total cost in excess of £900. They were then unable to repay the outstanding £1000 so defaulted. Wonga reckon they now owe £2500. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted October 4, 2014 Share Posted October 4, 2014 I'd assume that they take some data points from the customer (age, salary etc), That's a bit sophisticated, innit? "Fifty quid until I get my £1000 at the end of the month ..." Quote Link to comment Share on other sites More sharing options...
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