Author Topic: Wonga have collapsed  (Read 36 times)

Offline jackg

Wonga have collapsed
« on: August 30, 2018, 06:48:14 PM »
I'm not sure whether this is good news or bad news that one of the largest UK based payday lending companies has collapsed (and by largest I mean it was at least the most advertised and had a large number of customers it took advantage of - I mean gave loans to)...

The first of a line of issues that could lead to our next financial crisis and cause similar to what we had in 2008 or even more extreme.

Online Talk Merit

Re: Wonga have collapsed
« Reply #1 on: September 01, 2018, 07:17:32 AM »
Good job too. I think at one time they were charging interest rates of uop to 3,500% pa. They caused the breakup of familes, suicides, and an increase in petty crime such as shoplifting.

Offline jackg

Re: Wonga have collapsed
« Reply #2 on: September 01, 2018, 12:43:02 PM »
Good job too. I think at one time they were charging interest rates of uop to 3,500% pa. They caused the breakup of familes, suicides, and an increase in petty crime such as shoplifting.

Yeah they got ruined by the FCA's new rules on only letting ppeople pay, at most, 200% of what they had borrowed (which is still a bit high in my opinion)...

They charged 6000% per year at their peak I think (I saw it on the small print of their adverts) which is just rediculous, no wonder people had a lot of difficulty paying off their loans. It does suggest though that if a company like this has to liquidate from giving bad loans, what's the hope for all the other payday lenders who gave more reasonable loans...