Wonga.com going bust

Diddums

Diddums

Diddums

Caporegime
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Looks like their days are numbered.

Whilst it sucks for those who stand to lose their jobs, I can't help but lovethe sweet, sweet irony of a company which preys on people down on their luck going bust. Good riddance, the whole payday loan ship needs to sink.

https://www.bbc.co.uk/news/uk-45313958
 
Jokester said:
I’ll loan them a bailout.

At a 2000% interest rate.
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That seems like a bargain.

Anyone fancy giving a tldr as to why they hit the wall? At the rates they were charging and the number of broke people you'd think they'd be riding gold plated unicorns to the bank and back
 
d_brennen said:
That seems like a bargain.

Anyone fancy giving a tldr as to why they hit the wall? At the rates they were charging and the number of broke people you'd think they'd be riding gold plated unicorns to the bank and back
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Government changed laws and everyone put in compo claims which they can't afford.
 
d_brennen said:
That seems like a bargain.

Anyone fancy giving a tldr as to why they hit the wall? At the rates they were charging and the number of broke people you'd think they'd be riding gold plated unicorns to the bank and back
Click to expand...

In 2014 the Financial Conduct Authority found its debt collection practices were unfair and ordered it to pay £2.6m to compensate 45,000 customers.

Since then, payday loan companies have faced tougher rules and have their charges capped.

This has hit Wonga's profits hard and in 2016 it posted pre-tax losses of nearly £65m, despite claiming its business had been "transformed".

It has continued to face legacy complaints and was forced to seek a bailout from its backers this month amid a surge in claims.

A Wonga spokesman said: "Wonga recently raised £10m from existing shareholders to address the significant increase in legacy loan complaints seen across the UK short-term credit industry.

"Since then, the number of complaints related to UK loans taken out before the current management team joined in 2014 has accelerated further, driven by claims management company activity.

"Against this claims backdrop, the Wonga board continues to assess all options regarding the future of the group and all of its entities."
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Wongo obviously get a bad press, but they at least offered a legitimate service. The clamp down by the government probably just led people to turn to the back street loan sharks again with all the problems that brings.
 
Jokester said:
Wongo obviously get a bad press, but they at least offered a legitimate service. The clamp down by the government probably just led people to turn to the back street loan sharks again with all the problems that brings.
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Not exactly an honourable business if laws are changed specifically to stop your practices of extracting money from people.
 
Jokester said:
Wongo obviously get a bad press, but they at least offered a legitimate service. The clamp down by the government probably just led people to turn to the back street loan sharks again with all the problems that brings.
Click to expand...

Before the law changed to rein them in, they were lending money at nearly 6000 (yes six thousand) percent interest, and then threatening and harassing people when they got into debt. It probably would have been cheaper to go to the local loan shark.
 
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