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    Are Wonga for real?

    I was watching something earlier on and the adverts came on. I was abolutely horrified when the Wonga.com fresh way of thinking, blah dee blah bull**** ad came on with small print of average APR is......



    wait for it......



    .....4214%

    Surely a misprint? I am still slightly in shock that people are allowed to not only get away with it but also advertise. How can someone that desperate for cash be allowed a loan? Am I just too naive for words?

    55 Comments

    Banned

    Short term loans need very high apr to be a feasible business option to the lender.

    Original Poster

    master_chief

    Short term loans need very high apr to be a feasible business option to … Short term loans need very high apr to be a feasible business option to the lender.


    Agreed, very high but to me that'd be maximum of 100% APR, this seems like daylight robbery to me

    Banned

    zannaz82

    Agreed, very high but to me that'd be maximum of 100% APR, this seems … Agreed, very high but to me that'd be maximum of 100% APR, this seems like daylight robbery to me



    Not really. You want a quick easy loan for a few days, you pay the rates.

    dont think there is a regulation in place for high APR hence why it can happen.

    OH I NEEDZ NEW TV LET ME BORROW SOME MONEEES I CANT AFFORZ TO PAY BACK

    OH I HAZ SPUNKED ALL MA BENEEFITS MONEES ON HEROIN AND BOOZE LET ME BORROW SOME MONEES I CANT AFFORZ TO PAY BACK
    Edited by: "numptyj" 7th Jun 2011

    they are designed for thick people who most likely wont/can't pay the money back.

    I cant discribe either the lender or the loanee as anything else

    and wonga arent the highest apr%, if you really want a laugh read the justification to why you should totally disregard the APR as some weird maths nonsense

    Banned

    Brighthouse - your weekly payment store.

    Just be happy knowing you'll never have to use them OP. Seriously, I'd rather clean toilets than be a scummy poor person.

    Original Poster

    It drives me nuts. I've had jobs when I've made a fair bit of cash and also times when money has been really tight, but the idea that they're allowed to scam stupid people into a deepening poverty trap REALLY infuriates me. I want to go to the guys that run these companies and crack their heads together!!!

    zannaz82

    It drives me nuts. I've had jobs when I've made a fair bit of cash and … It drives me nuts. I've had jobs when I've made a fair bit of cash and also times when money has been really tight, but the idea that they're allowed to scam stupid people into a deepening poverty trap REALLY infuriates me. I want to go to the guys that run these companies and crack their heads together!!!



    How exactly are they scamming? They tell you exactly how much you pay back. If you don't like. then don't borrow!

    zannaz82

    It drives me nuts. I've had jobs when I've made a fair bit of cash and … It drives me nuts. I've had jobs when I've made a fair bit of cash and also times when money has been really tight, but the idea that they're allowed to scam stupid people into a deepening poverty trap REALLY infuriates me. I want to go to the guys that run these companies and crack their heads together!!!


    how else do you think honest crackheads buy crack ?

    vibeone

    Brighthouse - your weekly payment store.Just be happy knowing you'll … Brighthouse - your weekly payment store.Just be happy knowing you'll never have to use them OP. Seriously, I'd rather clean toilets than be a scummy poor person.


    Brighthouse when they cut off the electricity for arrears

    Original Poster

    thegazman

    How exactly are they scamming? They tell you exactly how much you pay … How exactly are they scamming? They tell you exactly how much you pay back. If you don't like. then don't borrow!


    It's in their small print, and those kind of numbers mean very little to dumb/desperate people. It's advertised as being affordable. My **** is it affordable.

    Banned

    How about not using them?

    Banned

    zannaz82

    It's in their small print, and those kind of numbers mean very little to … It's in their small print, and those kind of numbers mean very little to dumb/desperate people. It's advertised as being affordable. My **** is it affordable.



    If people are dumb enough to sign contracts without reading the small print then they deserve to be scammed.

    The only regulation regarding these type of "pay day" loans is that the APR must be clear.

    In this case, it is!!.

    What is also the fact, is that most people who have to take these out, don't understand what APR or interest means..

    The normal conversation goes...

    Do you want £500 now to spend NOW!.
    All you will be paying back is £9.72 a week for 120 months.
    Chantelle then says to her 4 all under age 5 children.. Wow, only £9.72 a week, that is nothing compared to the Income Support, Child allowance, Tax Credit, Housing Benefit and council tax benefit I get. I won't even notice it, and I will be able to buy that "faux" leather couch we have always dreamed of....


    That's kind of how it works...

    Edited by: "Chiptivo" 7th Jun 2011

    JonnyTwoToes

    If people are dumb enough to sign contracts without reading the small … If people are dumb enough to sign contracts without reading the small print then they deserve to be scammed.


    you agreed the terms and conditions of this site , did you read them ?

    Banned

    effingandjeffing

    you agreed the terms and conditions of this site , did you read them ?



    Not sure I had to give my bank details to get on this site?

    Chiptivo

    The only regulation regarding these type of "pay day" loans is that the … The only regulation regarding these type of "pay day" loans is that the APR must be clear.In this case, it is!!.What is also the fact, is that most people who have to take these out, don't understand what APR or interest means..The normal conversation goes...Do you want £500 now to spend NOW!.All you will be paying back is £9.72 a week for 120 months.Chantelle then says to her 4 all under age 5 children.. Wow, only £9.72 a week, that is nothing compared to the Income Support, Child allowance, Tax Credit, Housing Benefit and council tax benefit I get. I won't even notice it, and I will be able to buy that "faux" leather couch we have always dreamed of....That's kind of how it works...


    Do you write for the BBC I love that story

    zannaz82

    It's in their small print, and those kind of numbers mean very little to … It's in their small print, and those kind of numbers mean very little to dumb/desperate people. It's advertised as being affordable. My **** is it affordable.



    Small print? The APR is clearly advertised, as is how much you pay back. Just because it's not affordable in your case doesn't make it a scam. Some people might just need a few hundred quid for a few days to pay a credit card or bill to save them from being charged late fees, etc.

    I saw an ad on sky recently and the APR was over 2100 %

    JonnyTwoToes

    Not sure I had to give my bank details to get on this site?



    but this site is costing you at least £4.99 a week

    Banned

    effingandjeffing

    but this site is costing you at least £4.99 a week



    Now you're just being weird.

    Banned

    I really don't see what the issue is. Use the service as intended, for a couple of weeks or so, and the interest won't be that much.

    Original Poster

    thegazman

    Small print? The APR is clearly advertised, as is how much you pay back. … Small print? The APR is clearly advertised, as is how much you pay back. Just because it's not affordable in your case doesn't make it a scam. Some people might just need a few hundred quid for a few days to pay a credit card or bill to save them from being charged late fees, etc.



    Seriously, you think that those are the people that use these services? IMO Chiptivo pretty much knocked the nail on the head with the type of people taking out the loans.

    master_chief

    I really don't see what the issue is. Use the service as intended, for a … I really don't see what the issue is. Use the service as intended, for a couple of weeks or so, and the interest won't be that much.



    YOU DISGUST ME

    You must be a council estate benefit basher

    master_chief

    I really don't see what the issue is. Use the service as intended, for a … I really don't see what the issue is. Use the service as intended, for a couple of weeks or so, and the interest won't be that much.



    This ^ . I wouldn't get one personally but the idea is that you're borrowing it short term.. hence the high interest (which isn't much if you use it as intended)

    Banned

    numptyj

    YOU DISGUST MEYou must be a council estate benefit basher



    Sometimes I wish I could be. Seems so much easier that side of the tracks.

    i personally wouldnt pay for anything on finance etc. hate the thought of being someones b****h having to constanctly give them money.

    i paid for both my houses without the need for any mortgage but then again thats just my line of work i guess

    The APR is represented over a year which is why it is high.

    Some High Street banks charge £1 per day on an overdraft. Work out the APR% on that. Much more than a payday loan company.

    Banned

    Looks like we got a new tag master - "Fresh way of thinking"

    Awesome!

    Rupz

    i personally wouldnt pay for anything on finance etc. hate the thought of … i personally wouldnt pay for anything on finance etc. hate the thought of being someones b****h having to constanctly give them money. i paid for both my houses without the need for any mortgage but then again thats just my line of work i guess



    rent boy is obviously a lucrative business

    Was just browsing MSE and came across this thread, apparently with ‘just’ an APR of 600%! oO

    According to what you have posted you borrowed £2,000 and will have to … According to what you have posted you borrowed £2,000 and will have to pay back £12,600


    forums.moneysavingexpert.com/sho…078

    chester123

    The APR is represented over a year which is why it is high.




    The A of "APR" may have something to do with this??

    Original Poster

    Rupz

    i personally wouldnt pay for anything on finance etc. hate the thought of … i personally wouldnt pay for anything on finance etc. hate the thought of being someones b****h having to constanctly give them money. i paid for both my houses without the need for any mortgage but then again thats just my line of work i guess



    Need a mistress?

    Original Poster

    chester123

    The APR is represented over a year which is why it is high.Some High … The APR is represented over a year which is why it is high.Some High Street banks charge £1 per day on an overdraft. Work out the APR% on that. Much more than a payday loan company.


    Somewhat lower than 4214%.

    Incidentally I'm an accountant so I'm fairly familiar with the idea that APR is calculated over a year.

    Banned

    Chiptivo

    The A of "APR" may have something to do with this??



    Beat me to it.

    Wonga are for real, they provide a service, but.....nobody is forced to use their service.

    Banned

    Inactive

    Wonga are for real, they provide a service, but.....nobody is forced to … Wonga are for real, they provide a service, but.....nobody is forced to use their service.



    Good job you're here.

    zannaz82

    Somewhat lower than 4214%. Incidentally I'm an accountant so I'm fairly … Somewhat lower than 4214%. Incidentally I'm an accountant so I'm fairly familiar with the idea that APR is calculated over a year.



    As am I.

    £10 overdrawn at the Halifax equals £1 per day charge. So £10 costs you £30 in charges. Can you do the math?

    Less that the 4k but they charge the same on much smaller balances which makes the 4k look like chump change.
    Edited by: "chester123" 7th Jun 2011

    Original Poster

    365 days in a year, leaves you at 3650%, still lower than Wonga who are advertising a loan. Is that an unauthorised overdraft charge?

    God knows what the charge is for but numerous banks implement this £1 per day charge on top of the annual rate. So it dwarfs Wonga.
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