Wonga again

[Sparkie1723]

Wonga pushes up typical APR to 5,853 per cent - but says that borrowers will pay less for payday loans

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The whopping increase in Wonga's already astronomical APR is down to average loan period falling. The period of time that borrowers are taking to repay its loans has fallen from 30 days to 15.
Sparkie

[charitynjw]

Re: Wonga again

[jon1965]

Re: Wonga again

It doesn't matter how you dress it up, PDL's charge a stupid rate of interest. Most charge a flat rate for any loan of up to 31 days. APR is the only way to demonstrate just how expensive this type of loan is.
Even if you believe that there are circumstances where a short term loan is cost effective and I know this is what the "industry" keep trying to convince us, the way they lend, the people they target and the complete lack of checks that some companies use shows how low they stoop.

[FlamingParrot]

Re: Wonga again

PDLs are worse than illegal, unlicensed loan $hark$! :mad2: :mad2:

http://www.dailymail.co.uk/news/article-2328426/The-toothless-loan-shark-Market-trader-ran-illegal-lending-racket-fruit-veg-stall-spared-jail-rates-100-times-LOWER-high-street-firms.html

There was another article I read last Sunday along the same lines, where someone had got a consolidation loan from a local, unlicensed loan shark for £6k to pay off all his payday loans at a rate of just 25% vs up to 4000% charged by PDLs. Can't find it online though.

[CleverClogs]

Re: Wonga again

PayDay lenders should be nailed by their ears to a pillory and then should have their nose slit open.

[Sparkie1723]

Re: Wonga again

PayDay lenders should be nailed by their ears to a pillory and then should have their nose slit open.

Its not their nose slit open ......the part that should be slit open is very close to their backsides it holds two of their abacus large Beads

Sparkie

[wales01man]

Re: Wonga again

We can blame the companies till the cows come home but all the time they are acting lawfully nothing will change people will stil use them pay the interest and do it over and over again

[charitynjw]

Re: Wonga again

I understand that there are big changes afoot in paydayloanland.

[CleverClogs]

Re: Wonga again

all the time they are acting lawfully

I know they may have fallen into disuse, but are there no laws against usury?

[charitynjw]

Re: Wonga again

I know they may have fallen into disuse, but are there no laws against usury?

The CCA?

[CleverClogs]

Re: Wonga again

The CCA only forbids unlicensed lending - it does not govern interest rates.

[Sparkie1723]

Re: Wonga again

Section 140 covers a lot of things including the old extortionate credit agreements....... But I do not want to get into an argument over this ...as it is only my personal opinion and I'm "a senile old git"

Sparkie

[jon1965]

Re: Wonga again

I always thought that there was an argument against very high interest rates.
I must disagree with walesman on this one. You can not blame the punter all the time. In this case regulation is needed. Considering that these are fixed term loan why do some companies say they will only collect the interest due and you have to call them between 9 and 5 to pay the loan off if you want. When you do try and call them you are on hold for 20 mins so need another PDL to pay the bloody phone bill.
If the banks weren't allowed to charge such punitive charges when you go overdrawn that would be a major stumbling block against the PDL companies argument.

Now I think I am off to live in my car (the one I bought with a PDL)

[FlamingParrot]

Re: Wonga again

I always thought that there was an argument against very high interest rates.
I must disagree with walesman on this one. You can not blame the punter all the time. In this case regulation is needed.

I agree, legislation has to be in place to protect individuals, just as it's in place in other areas, for example, shops are not allowed to sell food past its sell-by date. Imagine if there was no such legislation in place, shops would keep selling products days, weeks or even months after they'd expired at increasingly reduced prices, and there would always be people who would put their health at risk for the sake of buying cheap food!

Also I'm told in other European countries, interest rates are capped at something like 50%, may sound high but it's much lower than all PDLs charge here!

Now I think I am off to live in my car (the one I bought with a PDL)

That has to be the best ever argument!

msl: msl: msl: msl: msl: msl:

[CleverClogs]

Re: Wonga again

Section 140 covers a lot of things including the old extortionate credit agreements....... But I do not want to get into an argument over this ...as it is only my personal opinion and I'm "a senile old git".

There were sections in the Consumer Credit Act 1974 forbidding extortionate credit bargains - link - but Blair's snollygosters repealed those laws in 2006.

Those useful sections were replaced by the far woollier and less useful sections 140A to 140D - link - which gave courts the power to intervene if the credit relationship was found to be "unfair".