Re: Wonga and moral hazard? : Fri Oct 10, 2014 7:01 am  

cod'ead wrote:

Don't berate him, we should all send him pictures of kittens

Just expect the same application of the AUP as anyone else cod'ead.

Anyway, back on topic, seems no other similar lenders are following Wonga down this route, were Wonga really the only one's with poor lending criteria?

Re: Wonga and moral hazard? : Fri Oct 10, 2014 2:02 pm  

Standee wrote:

Just expect the same application of the AUP as anyone else cod'ead.

Anyway, back on topic, seems no other similar lenders are following Wonga down this route, were Wonga really the only one's with poor lending criteria?

No. Wonga have undoubtedly been singled out for a) the fact they are the biggest, most well known of these companies, and b) the fake lawyer debacle.

However it is hard to have sympathy. Yes everyone knows what they are signing up to. But people will do daft things when they are desperate and Wonga have made millions taking advantage of these desperate people. Knowing full well that they can't afford to take these loans on.

Re: Wonga and moral hazard? : Fri Oct 10, 2014 2:06 pm  

Mr. Zucchini Head wrote:

No. Wonga have undoubtedly been singled out for a) the fact they are the biggest, most well known of these companies, and b) the fake lawyer debacle.

However it is hard to have sympathy. Yes everyone knows what they are signing up to. But people will do daft things when they are desperate and Wonga have made millions taking advantage of these desperate people. Knowing full well that they can't afford to take these loans on.

Shopacheck did the same for 40 years in Hull, and nobody said a word. In fact, they named a stand after the chief shark, and a memorial cup.

Re: Wonga and moral hazard? : Fri Oct 10, 2014 3:56 pm  

Standee wrote:

Shopacheck did the same for 40 years in Hull, and nobody said a word. In fact, they named a stand after the chief shark, and a memorial cup.

And Provident sponsored Bradford and no one cared about that either. It doesn't make the actions of these companies morally correct.

My opinion on Wonga and all the other payday loan companies is that there is a place for them and if people use them responsibly they are absolutely fine.

The problem is that lots of people don't use them responsibly. Or they take out a loan with good intentions and then something happens and they can't repay. In these scenarios, rather than just piling on interest and fees these companies need to do more to protect these people.

I know of instances where people have repaid loans late (we're talking months late btw not just a few days) and Wonga have allowed them to immediately take another loan out. Now you might call these people stupid. But Wonga shouldn't be allowed to do that, surely?

Re: Wonga and moral hazard? : Fri Oct 10, 2014 4:02 pm  

Mr. Zucchini Head wrote:

But Wonga shouldn't be allowed to do that, surely?

Not just Wonga, all loan companies.

It's no different to "equity release" mortgages allowed to repay debts, is it?

I've said it so many times in the last few days. PERSONAL RESPONSIBILITY.

Should be simple, Mortgage, 3.5 x time salary (joint or sole)
Repayments are affordable below 15% of monthly income
All other debts taken into account

it's about affordability

Re: Wonga and moral hazard? : Fri Oct 10, 2014 4:49 pm  

Standee wrote:

Not just Wonga, all loan companies.

It's no different to "equity release" mortgages allowed to repay debts, is it?

I've said it so many times in the last few days. PERSONAL RESPONSIBILITY.

Should be simple, Mortgage, 3.5 x time salary (joint or sole)
Repayments are affordable below 15% of monthly income
All other debts taken into account

it's about affordability

You're dead right. Any company that lends to people who can't afford it needs to be looked at. But some payday loan companies will lend to literally anyone.

Re: Wonga and moral hazard? : Fri Oct 10, 2014 7:53 pm  

It's tickling me that as I read this thread, loan offers are scrolling up at the bottom of my phone screen ....

Also isn't it great that the powers that be have such inbuilt inertia that they have to wait until there is a scandal/crisis before they act, when it's obvious to man in the street that for a large section of mainly poorly educated and poorly organised people the last thing they need is one of these sorts of loans which make their problems worse not better.
But it is all about making a pretty shilling and besides it will regulate itself responsibly won't it if left unfettered.

Re: Wonga and moral hazard? : Fri Oct 10, 2014 8:42 pm  

What a pity governments (of whatever hue), over the years have failed to promote the benefits of local credit unions. They seem to work well in the US but although there are a few here, they really are few and far between

Re: Wonga and moral hazard? : Fri Oct 10, 2014 9:30 pm  

Still waiting for the answers to my questions to Standee.
Mind you I'm still waiting for answers to similar questions to AJW.
Sadly,and they still cannot understand, that by their lack of being able to respond,it shows that they really do not have the knowledge to cope with the 19th century never mind the current global scenario.

Re: Wonga and moral hazard? : Sat Oct 11, 2014 7:10 am  

Standee wrote:

anyone calling someone a monkey is abuse, and the AUP has rules against that, does BG know I'm not of African origin, but no, he's allowed, typical of RLFans, one rule for one, one rule for another.

Nobody called you a monkey.
The organ grinders monkey was AJW1

The mask may have slipped.