Wonga.com going bust

GGizmo · 26 Aug 2018 at 22:56

It comes to something when even the Chinese government restricts apr percentages on loans, yet our government seem to turn a blind eye.

arknor · 26 Aug 2018 at 23:53

Too big to fail! why doesn't the government buy the shares and then start selling them off for less than they paid

CREATIVE!11 · 27 Aug 2018 at 00:15

And nothing of value was lost....

HoneyBadger · 27 Aug 2018 at 00:56

Good riddance.

muon · 27 Aug 2018 at 02:17

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.

I wouldn't know where to find a street loan shark. Either way they are illegal. I also suspect they aren't actually very prevalent and rely on naivity for enforcing payments (much like most scams preying on the vulnerable).

The idea that they could actually physically harm someone and not get caught is unrealistic given they still have to collect payments elsewhere and are probably known by name.

StriderX · 27 Aug 2018 at 02:38

muon said:
I wouldn't know where to find a street loan shark. Either way they are illegal. I also suspect they aren't actually very prevalent and rely on naivity for enforcing payments (much like most scams preying on the vulnerable).

The idea that they could actually physically harm someone and not get caught is unrealistic given they still have to collect payments elsewhere and are probably known by name.

If you don't know where to find one, you don't need one. If you believe we live in paradise where no one lives in poverty, then i have a bridge over here you might like.

muon · 27 Aug 2018 at 02:49

StriderX said:
If you don't know where to find one, you don't need one. If you believe we live in paradise where no one lives in poverty, then i have a bridge over here you might like.

Right, because I said they don't exist.

Justifying the existence of mass market crazy APR lending companies without onerous regulations (basically corporate loan sharks) because there is a far smaller illegal grey economy exists where a few people are exploited is the worst argument I have ever heard.

Secondly, I'm pretty sure you don't know my background.

StriderX · 27 Aug 2018 at 02:52

muon said:
Right, because I said they don't exist.

I suspect they exist far more than you think they do, which is my point. It would also appear that their prevalence will rise as result of scarcity of supply.

muon · 27 Aug 2018 at 02:53

StriderX said:
I suspect they exist far more than you think they do, which is my point. It would also appear that their prevalence will rise as result of scarcity of supply.

I suspect they don't and I would have expected to at least have known about them.

I would be comfortable in saying they would represent <10% if not <1% of the lending done by all pay day lenders (£2.8bn) and pawn brokers (can't find an estimate).

Rroff · 27 Aug 2018 at 05:18

=XDC=FluphyBunny said:
There is very little difference between the two. Disgusting company.

I had a job interview (IT) for a company back in ~2005 - advert was an nondescript ltd name (I'm pretty sure it was WDFC ltd but googling it doesn't back that up unless another company used it before Wonga) - the 10 foot metal fences around the building should have given me some kind of clue (I went in the back via an industrial estate and didn't see what the front was like initially) - the back had reinforced doors where you had to wait for the outer one to close to open the inner and portholes, etc. hah - mid-way through the interview process the MD halted it and in a very fatherly kind of way was like "I don't think this is the job for you" implying I seemed to decent for it and lead me out through the front where it was apparent it was a pay day loan company. Not sure what my mental process would have been if they'd offered the job.

angel102 · 27 Aug 2018 at 06:27

nothing more than legal loansharks, I won't shed a tear for them.

angel102 · 27 Aug 2018 at 06:31

muon said:
I wouldn't know where to find a street loan shark. Either way they are illegal. I also suspect they aren't actually very prevalent and rely on naivity for enforcing payments (much like most scams preying on the vulnerable).

The idea that they could actually physically harm someone and not get caught is unrealistic given they still have to collect payments elsewhere and are probably known by name.

sure, because desperate people would never do anything illegal or seek services from people that are illegal. You will always have people ready and willing to take advantage of people.

Jokester · 27 Aug 2018 at 06:42

muon said:
I suspect they don't and I would have expected to at least have known about them.

I would be comfortable in saying they would represent <10% if not <1% of the lending done by all pay day lenders (£2.8bn) and pawn brokers (can't find an estimate).

http://www.bbc.com/news/uk-wales-south-east-wales-42194519

A simple google returned tons of results of loan sharks being prosecuted and jailed and they’re just the ones that get caught.

Caracus2k · 27 Aug 2018 at 08:35

All the people here disparaging these sort of loan companies should remember that the massive interest rates they charge(d) were/are a reflection of the delinquency/default rates of the loans they made.

I'm not suggesting that such businesses should not be heavily regulated of course but they provide a service that would otherwise be filled by the black economy.

Can't say I'll miss their adverts however.

Huntyz · 27 Aug 2018 at 08:42

Good Riddance.

Hotwired · 27 Aug 2018 at 08:54

Caracus2k said:
All the people here disparaging these sort of loan companies should remember that the massive interest rates they charge(d) were/are a reflection of the delinquency/default rates of the loans they made.

I'm not suggesting that such businesses should not be heavily regulated of course but they provide a service that would otherwise be filled by the black economy.

Can you describe the value of a business that offers high interest loans to people who are likely already in debt to other avenues of credit.

They advertise to the desperate and financially incompetent. The only way you can benefit from these companies is if you didn't need to in the first place.

Caracus2k · 27 Aug 2018 at 08:59

Hotwired said:
Can you describe the value of a business that offers high interest loans to people who are likely already in debt to other avenues of credit.

They advertise to the desperate and financially incompetent. The only way you can benefit from these companies is if you didn't need to in the first place.

So (to slightly parrot some of the advertising) you have a poor credit rating maybe some existing debts but have a bill that needs to be paid immediately that can't be easily be avoided... For example you need your car for work and it needs some repairs or you boiler has broken in the middle or winter.

A short term payday loan may be the only (legal) option here. The astronomical APR isn't so much of an issue if the loan is paid back as intended.

Let's not claims that there is 'no' legitimate market for such lending.... Of course there has been plenty of bad practice in the past by certain lenders.

adolf hamster · 27 Aug 2018 at 09:45

thank god, one less parasitic company feeding on the vunerable.

edscdk · 27 Aug 2018 at 10:00

Swiss company with directors not in the UK.. Should have been shut down years ago, take money from the poorest but put (probably) little to nothing back into the system. Funny to collect money from the poorest then sponsor a football team (aka the richest few % in the country)

randomshenans · 27 Aug 2018 at 11:39

I do love the irony in this. It's brilliant.