"Borrowing £250 + Interest & fees* £76.06 = Total to repay £326.06 "
28 day loan... I'm in!
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Ooh. Wonga 'sidebar' advert for loans! Thought I'd check it out ...
(7 posts) (5 voices)
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The All New Jeni B
onlineMemberWas there not an announcement last week or the week before saying the FSA were to investigate this?
It's simply legalised loansharking!
Posted 8 months ago # -
Ironduke
offlineMemberI'm afraid I disagree.
So long as the information is upfront and explained clearly on the interest rate, then it is a company offerring short term unsecured loans and the risk is expressed in the interest rate, so there is a realistic return for the risk over the intended period of the loan.
They risk 250 quid to make 76quid; its unsecured and short term, but the inherent risk must be very high (as it is a lender of last resort) and the fees also cover the administration required in organisation and recovery.If other lenders wished to offer the same borrowers money at a better exchange rate for the same terms then Wonga etc would go out of business. The fact that they don't indicates that perhaps the rate is appropriate and cannot be bettered by other lenders at the same terms.
Posted 8 months ago # -
rikkor
offlineMemberAdd three zeroes to that loan principal, and I'm in! Chances are I'll have the extra money to pay it back in 28 days. The imprisoned Nigerian oil minister's distraught wife seems to be warming to my advances.
We have you beat in the US. We now have ads on TV for loans from Indian tribes. As they are exempt from any government control, I'm absolutely certain that the interest rates are in the 9,000%/month range.
Posted 8 months ago #
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