Odd Wonga Situation - Potential win

Destination · 26 Oct 2012 at 16:46

denby said:
... and APR doesn't really mean anything on a short term loan as APR is an annual charge...

You truely have absolutely no concept how charges and interest is worked out, and what your loan is actually costing you.
Wonga make their 100M from people like you who have no concept of how they are fleeecing you.

Theophany · 26 Oct 2012 at 16:56

denby said:
APR doesn't really mean anything on a short term loan as APR is an annual charge

APR/12 = monthly interest. Wonga's 4214% APR (representative) works out at, what, 350% per month? I'd say APR is pretty meaningful.

Kutter · 26 Oct 2012 at 17:05

Theophany said:
APR/12 = monthly interest. Wonga's 4214% APR (representative) works out at, what, 350% per month? I'd say APR is pretty meaningful.

He did the wonga calculations.

Theophany · 26 Oct 2012 at 17:08

doofski said:
He did the wonga calculations.

Chris-.- · 26 Oct 2012 at 17:09

You'll never win in life if you're using wonga.

BDEE · 26 Oct 2012 at 17:17

kierenharrold said:
If you never had all the money in the account, it would be in Wongas best interest to only take what you have. That way they get more out of you in the long run as the interest mounts up. I also imagine that there will be penalty fees for not paying in full.

How exactly are Wonga meant to know what someone has in their account?

Jono8 · 26 Oct 2012 at 17:18

BDEE said:
How exactly are Wonga meant to know what someone has in their account?

Well for most of their customers i think they can safely assume " not much"

Surveyor · 26 Oct 2012 at 17:21

Theophany said:
APR/12 = monthly interest. Wonga's 4214% APR (representative) works out at, what, 350% per month? I'd say APR is pretty meaningful.

A £100 Wonga loan over 31 days costs £137.76 to pay back.

I'm not saying that's cheap but it certainly isn't 350% interest per month.

Deleted member 77746 · 26 Oct 2012 at 17:25

omg wonga it's just wong.

Curio · 26 Oct 2012 at 17:27

So let me get this straight - Wonga is great and we should all use them? I'm having trouble following the general vibe here

wannabedamned · 26 Oct 2012 at 17:28

Also if you cant make the repayments, you just phone them up and explain. Aslong as you have a legit reason, and you fill out an assessment of earnings. They will freeze the interest.

In answer to the above. No people should NOT use Pay day loan services. Just having them on your credit history actually hurts it.

kierenharrold · 26 Oct 2012 at 17:54

BDEE said:
How exactly are Wonga meant to know what someone has in their account?

By getting in contact with the bank. Your balance isn't some sort of super restricted data that can only be accessed by you.

413x · 26 Oct 2012 at 17:58

This is the wong way to handle you're finances. Use your Wang!

Is it a one off or is it regular? I really can't see how using this servicehappens .
If it's regular you are spending to much
A credit card will cover any one off emergencies (engine in car blowing up)

Need more info!

dasyad · 26 Oct 2012 at 18:01

al4x said:
This is the wong way to handle you're finances. Use your Wang!

Are you suggesting he should be a gigalo?

BDEE · 26 Oct 2012 at 18:03

kierenharrold said:
By getting in contact with the bank. Your balance isn't some sort of super restricted data that can only be accessed by you.

Actually it is............

(Dont try and aruge with me, I have worked in Banking all my life and companies cannot simply get in contact and get balance information. Utter pig tosh).

mmj_uk · 26 Oct 2012 at 18:05

kierenharrold said:
By getting in contact with the bank. Your balance isn't some sort of super restricted data that can only be accessed by you.

I would have thought it was. :confused:

413x · 26 Oct 2012 at 18:08

dasyad said:
Are you suggesting he should be a gigalo?

Better than wonga! :-P

Crafty · 26 Oct 2012 at 18:17

kierenharrold said:
By getting in contact with the bank. Your balance isn't some sort of super restricted data that can only be accessed by you.

So if I phone your bank and say I'm from Wonga you would expect me to get your bank balance ?

Not a chance. They shouldn't give out any details at all - details of direct debits, account names etc.

kierenharrold · 26 Oct 2012 at 18:24

Crafty said:
So if I phone your bank and say I'm from Wonga you would expect me to get your bank balance ?

Not a chance. They shouldn't give out any details at all - details of direct debits, account names etc.

I wouldn't say its impossible.

shouldn't is not the same as don't. Just because something shouldn't be done, doesn't mean it doesn't happen.

[TW]Fox · 26 Oct 2012 at 18:30

Theophany said:
APR/12 = monthly interest. Wonga's 4214% APR (representative) works out at, what, 350% per month? I'd say APR is pretty meaningful.

It's not really, is it?

Say you wanted to borrow £100 off me for a week. I said sure, no worries but I want something for my trouble otherwise its not worth the risk.

Which would be the acceptable amount of money to charge that both offers you a decent deal to get out of financial issue you have *and* makes it worth me taking on the risk?

A tenner perhaps? You give me a tenner and I'll loan you a hundred quid for a week. Doesn't sound exortionate does it?

£10 interest to borrow £100 for 1 week is.... about 1400% APR.

This is why APR is meaningless and misleading for short term loans. If you lent somebody £100 for a week at 10% APR you might as well not even bother. The interest would be pence. Perhaps single figure pence.

APR should be used to appraise lending thats more than a year in duration.