• Pay day loan company Wonga to write off debts of 330,000 customers (£220m)
    35 replies, posted
[B]Payday lender Wonga says it is writing off £220m of debts for 330,000 customers after putting in place new affordability checks. [/B][url]http://www.bbc.co.uk/news/business-29457044[/url]
Damn those parasites to hell.
Payday Loans are just sickening.
I had a loan with with Wonga and I went into debt management, wonder if they have written mine off? Just checked the criteria and they will write it off! wahey! It's been hanging over me for years and will be good to see it gone! Applied for this when I was 17/18 and I'm now 23!
litterally scum, here in ohio pay-day loans were made illegal...so they just changed their company name from pay day loans to pay day morgages or pay day-here's-a-check-pay-me-10x-its-value-tommorow places
What is a pay day loan? Is it like a place were you got to get some money and you have to pay it back with insane interest?
[QUOTE=peepin;46134374]What is a pay day loan? Is it like a place were you got to get some money and you have to pay it back with insane interest?[/QUOTE] A payday loan is a small short term loan generally called that because its usually used as a cash advance. I.E. you need cash [I]now[/I] and you'll pay it back when you get your check in two weeks. and yes, usually stupid amounts of interest.
[QUOTE=S31-Syntax;46134421]A payday loan is a small short term loan generally called that because its usually used as a cash advance. I.E. you need cash [I]now[/I] and you'll pay it back when you get your check in two weeks. and yes, usually stupid amounts of interest.[/QUOTE] Isn't that what credit cards are for? To buy things and then have the money taken from you on or shortly after payday?
[QUOTE=Adamhully;46134445]Isn't that what credit cards are for? To buy things and then have the money taken from you on or shortly after payday?[/QUOTE] Well yes but people with bad credit can't get credit cards, but they can get pay day loans. Hence why they're so hated - they prey on the poor
I guess nobody's getting any wonga anymore. Poor female Killing Floor characters. :(
[quote]When Elliott Gomme needed money for a holiday, he turned to payday lender Wonga. He needed £120 and says he didn't have a problem convincing them to lend him cash by saying he worked full-time. But the 20-year-old admitted lying on his application and told BBC Newsbeat it was "too easy" to be accepted. [B]He's now likely to be one of 330,000 people whose debts will be written off[/B] after a ruling that Wonga lent money to people who couldn't repay it.[/quote] Really? What an idiot.
[QUOTE=matt.ant;46134483]Well yes but people with bad credit can't get credit cards, but they can get pay day loans. Hence why they're so hated - they prey on the poor[/QUOTE] It sounds rather like a service coming straight out of a TV commercial. There's an old saying that nobody has anything to give a way for free. Otherwise I can understand those who need to get money in advance for their stuff. I'm glad that some debt gets written off.
[QUOTE=KILLTHIS;46135335]It sounds rather like a service coming straight out of a TV commercial. There's an old saying that nobody has anything to give a way for free. Otherwise I can understand those who need to get money in advance for their stuff. I'm glad that some debt gets written off.[/QUOTE] They actually advertise on TV and radio quite heavily.
[QUOTE=Demache;46135349]They actually advertise on TV and radio quite heavily.[/QUOTE] Ironically their slogan is "wonga.com - straight talking money, without the drama."
[QUOTE=Demache;46135349]They actually advertise on TV and radio quite heavily.[/QUOTE] They have also sponsored Premier League football teams, Newcastle, Blackpool (Before and after they got relegated) and IIRC they also sponsored Hearts in the Scottish league. Caused a massive uproar amongst fans of these clubs cause they don't want to be affiliated with these vultures. They are literally legal loan sharks, absolute wankers.
If you ever have to get a payday loan, you're probably a fucking idiot. It's not hard to keep a few thousand in savings just in case of a rainy day.
[QUOTE=Antdawg;46135755]If you ever have to get a payday loan, you're probably a fucking idiot. It's not hard to keep a few thousand in savings just in case of a rainy day.[/QUOTE] or maybe that person doesn't want to starve.
[QUOTE=Fr3ddi3;46135451]They have also sponsored Premier League football teams, Newcastle, Blackpool (Before and after they got relegated) and IIRC they also sponsored Hearts in the Scottish league. Caused a massive uproar amongst fans of these clubs cause they don't want to be affiliated with these vultures. They are literally legal loan sharks, absolute wankers.[/QUOTE] Oh yeah. The local ones around here love sponsoring city events and such. Gotta love that advertising.
[QUOTE]5853% APR[/QUOTE] Holy fucking hell. And that's right on the front page. Are people this desperate?
[QUOTE=theevilldeadII;46135892]or maybe that person doesn't want to starve.[/QUOTE] So they can instead pay back twice as much as the initial loan itself when they get their next pay check? Sounds great! Sounds like they need to learn how to budget!
[QUOTE=Snowmew;46135944]Holy fucking hell. And that's right on the front page. Are people this desperate?[/QUOTE] Unfortunately yes. Bad credit is everywhere, and some people just cannot make the hard decisions, especially with kids. Hey, all of a sudden companies just WANT to give you money.
Why does everybody in the US use credit cards? Debit cards seem so much more consumer protecting in my opinion, as you can't spend anything if you don't have it, which also prevents idiots from purchasing expensive things on a tiny bit of credit.
[QUOTE=Antdawg;46135755]If you ever have to get a payday loan, you're probably a fucking idiot. It's not hard to keep a few thousand in savings just in case of a rainy day.[/QUOTE] I have a full time job with a proper budget and I typically have very very little at the end of the month to put into savings. Student debt, bills, rent, maybe think about the different situations people have before making dumb posts.
[QUOTE=Antdawg;46135947]So they can instead pay back twice as much as the initial loan itself when they get their next pay check? Sounds great! Sounds like they need to learn how to budget![/QUOTE] The 6000% interest is over a YEAR. You're suppose to pay it back in a couple of weeks - so you only pay back what you borrowed + extra (Such as £130 from £100 borrowed) but most people really couldn't afford to pay that back ALL the time, and of course, they didn't only charge you for not making a payment, they kept charging you, and charging you, and charging you. That £100 you borrowed that you only had to repay £130 a week later? Suddenly it's a £400 bill 3 months later that you still can't afford to pay. [editline]3rd October 2014[/editline] [QUOTE=Antdawg;46135755]If you ever have to get a payday loan, you're probably a fucking idiot. It's not hard to keep a few thousand in savings just in case of a rainy day.[/QUOTE] Ahahaha. Yeah, try losing your job in a recession and having kids. Good. Fucking. Luck.
[QUOTE=Bentham;46136006]I have a full time job with a proper budget and I typically have very very little at the end of the month to put into savings. Student debt, bills, rent, maybe think about the different situations people have before making dumb posts.[/QUOTE] I can go on anecdotes as well, because I only work part-time yet I live by myself and so have no one to split my bills with (eg I have rent to the effect of $180 per week, and an Internet connection that costs $80 per month). But I was still able to build up savings that went into five figures and a bit after around 18 months. Maybe think about the different situations people have before making dumb posts. [editline]3rd October 2014[/editline] [QUOTE=MrEndangered;46136027]The 6000% interest is over a YEAR. You're suppose to pay it back in a couple of weeks - so you only pay back what you borrowed + extra (Such as £130 from £100 borrowed) but most people really couldn't afford to pay that back ALL the time, and of course, they didn't only charge you for not making a payment, they kept charging you, and charging you, and charging you. That £100 you borrowed that you only had to repay £130 a week later? Suddenly it's a £400 bill 3 months later that you still can't afford to pay.[/quote] As I said, if you ever get a payday loan you're probably a fucking idiot. Ahahaha. Yeah, try losing your job in a recession and having kids. Good. Fucking. Luck.[/QUOTE] Yeah, because the first thing I'd do if I lose my job is to get a payday loan! Is that brain in your head still working??
[QUOTE=Antdawg;46136254]I can go on anecdotes as well, because I only work part-time yet I live by myself and so have no one to split my bills with (eg I have rent to the effect of $180 per week, and an Internet connection that costs $80 per month). But I was still able to build up savings that went into five figures and a bit after around 18 months.[B] Maybe think about the different situations people have before making dumb posts.[/B] [editline]3rd October 2014[/editline] As I said, if you ever get a payday loan you're probably a fucking idiot. Ahahaha. Yeah, try losing your job in a recession and having kids. Good. Fucking. Luck. Yeah, because the first thing I'd do if I lose my job is to get a payday loan! Is that brain in your head still working??[/QUOTE] Is this a freudian slip??
[QUOTE=yannickgd;46135997]Why does everybody in the US use credit cards? Debit cards seem so much more consumer protecting in my opinion, as you can't spend anything if you don't have it, which also prevents idiots from purchasing expensive things on a tiny bit of credit.[/QUOTE] If your responsible with them, they are actually extremely handy. Many have rewards programs so its essentially free stuff/money if you pay it off at the end of each month. I've made a couple hundred bucks off Wells Fargo these past few years just for using the card and I haven't given them a penny in interest or fees. They also offer better consumer protection than debit transactions do. You can reverse any charge up to 30 days later if it becomes compromised and such, as opposed to just 3 with debit. That's the law in the US anyway. And naturally gives you a credit history, so you can take out ACTUAL loans with far better rates if you ever need one. Obviously, if your really bad at managing money and keeping track of different accounts, by all means, do not get one.
I think a reasonable rate for short term loan likes with would be 6-8%. But thats not the rate a cash store will ever use. Because they wouldn't 'make enough'.
Someone wanna explain APR and interest? Obviously people aren't paying these loans so the interest rate goes up for everyone. In a perfect world payday loans sound pretty legit if that 5000% figure isn't true.
[QUOTE=Antdawg;46136254]Yeah, because the first thing I'd do if I lose my job is to get a payday loan! Is that brain in your head still working??[/QUOTE] The first thing people do when they lose their job is (hopefully) get a redundancy payout and look for another job. Hey! Those things last forever, good thing we can cut back on every monthly bill like the car- oh wait no we can't. Yeah we can get rid of things but not that. Ok, lets get that social security rolling in the doe- huh, this isn't much to actually live on, oh well atleast I can still afford my mordgage repayments! Oh wait no my grace period is over. Clearly, the way you talk makes it sound like you don't actually have a full time job and actually have several years worth of 'savings' that the average person can make. Calling people idiots because you think make financial decisions when you're under pressure is easy means you're simply a prick with no brains. That's OK, you'll learn. [editline]3rd October 2014[/editline] [QUOTE=Hollosoulja;46136375]Someone wanna explain APR and interest? Obviously people aren't paying these loans so the interest rate goes up for everyone. In a perfect world payday loans sound pretty legit if that 5000% figure isn't true.[/QUOTE] APR is basically the interest rate you pay on a loan over a year. The lower the rate, the cheaper the loan will be to repay over a single year. An 15% rate sounds a lot, but if you have the option to pay off your debts monthly - say a credit card at only 5% interest, it's really good, as even if you can't it's not a lot to repay. Higher risk to the company means higher APR, which is why 'easier' to get store credit cards are typically well over 25%. Payday loans give out money like it's air, but only for a very short period - so technically 6000% means nothing if you pay it off in a week. It only matters if you can never pay it back. Interest means the extra you need to pay back on top of what you've borrowed, usually as a percentage (2%, 10%, etc). So £100 borrowed becomes £110 at 10% interest. [editline]3rd October 2014[/editline] [QUOTE=doommarine23;46136279]Is this a freudian slip??[/QUOTE] No, it's a Freudian idiot.
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