Wonga.com going bust

ubersonic said:
Who would have thought that loaning money to people with no job, no house and no possessions of value wouldn't work as a long term business model xD
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Loads of profitable companies out there doing just that. The ‘Time Rich’ is a profitable if risky market.
 
Housey said:
There are city traders who used Wonga
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And? :) They knew what they were getting into but were likely blinded by ego and greed. I have worked in financial compliance for over a decade and the cowboy behaviour is ever present. It keeps me employed...
 
Bugbait said:
And? :) They knew what they were getting into but were likely blinded by ego and greed. I have worked in financial compliance for over a decade and the cowboy behaviour is ever present. It keeps me employed...
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My point was about the demographic who use such companies, not all the uneducated masses. Ive worked in the FS sector on and off for decades...
 
Housey said:
My point was about the demographic who use such companies, not all the uneducated masses. Ive worked in the FS sector on and off for decades...
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So the point is that formal education doesn't exclude anyone from making financially silly decisions :) /Agree
 
Bugbait said:
Sadly it's not even the uneducated. I knew several adults who didn't understand compound interest and even amortisation without a lot of explaining and examples. Disturbing really since it's taught at late primary to early high school?
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It maybe taught now, but I bet it wasn't when they were at school. It wasn't when I was at school anyway.
 
The problem with Wonga loans and the like is that there were people who would take out an initial loan with them and then when it came due would simply take out another loan to "pay it off" and avoid the default charges, thereby running up ever higher interest charges.

What was needed was a maximum term of say 7 days with a ban on rolling over these loans. Anyone unable to repay could be hit with a one-off fee but with further interest frozen while they were moved onto a 6 month repayment plan.
 
It's the "guarantor" loans that get me.
On the bailiff programs that seem to be on 24/7 now they never went after the kids it was always right to the guarantor.
I say "kids" as it ways seems to be a useless daughter the mum has bailed out and they take the dads car to pay it off (Or they pay up).

Utter madness.
 
Never understood the hatred.

Used them a couple of times when I wanted a bit of spending money before payday. Stupidly clear of exactly what you would owe etc. and didn't even seem that expensive.

Personal responsibility is a thing of the past.
 
Sparky__H said:
It's the "guarantor" loans that get me.
On the bailiff programs that seem to be on 24/7 now they never went after the kids it was always right to the guarantor.
I say "kids" as it ways seems to be a useless daughter the mum has bailed out and they take the dads car to pay it off (Or they pay up).

Utter madness.
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Not madness, just dumb families.
 
Zatoichi.uK said:
This one bothers me more I think. It's all friendly and nice..
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That's the "guarantor" type loan that concerns me more.

If someone gets a loan and defaults then the person or lender loses out. That debt cannot be passed onto someone else unless married etc.

This loan means they can go after the accumulated assets of the parents, and they will. I bet more often then not the actual payment of these loans is from the guarantor so the bailiffs don't come knocking.

EDIT: Its just insidious, it's preying on emotion.

EDIT2: In right circumstances..blagh blagh blagh.. financial responsibility.. blagh blagh balgh
 
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