To hope that the CofE can kill off Wonga, but think they might struggle?

(229 Posts)
ShadeofViolet Thu 25-Jul-13 11:08:57

BBC Link

I would love to see an end to Wonga, but we already have credit unions, I dont know how we can change the culture.

IIRC, with our credit union, you have to save first, then you can borrow. Maybe that is what is putting people off.

squoosh Thu 25-Jul-13 11:54:51

Payday loans pursue those who are already on the bread line. Why else do they advertise on daytime television?

Yes people are responsible for their own finances but that doesn't mean we should allow companies like this prey on people who clearly have no clue how to manage their financial affairs.

MalcolmTuckersMum Thu 25-Jul-13 11:55:29

I agree people should be responsible for themselves. It's a nice theory. It's an easy theory to espouse when it's not YOU up to your ears in shit. Everything in this country is set to penalise the hard up or those temporarily in trouble from set ups like Wonga to the legalised robbery of the utility companies who charge so much more for pre-payment which is an unavoidable necessity for so many on low/precarious incomes. It's shit. Really really shit. And I'm afraid I don't believe a different Government would do diddly squat about it.

CuChullain Thu 25-Jul-13 11:57:57

*Failure to keep up with your repayments may result in the loss of your home and/or plague, pestilence, famine, the requirement to cut off your hair or sacrifice your first born to the Lord Almighty, or your own death in some barbaric old testament way, in which case that is just the start of your problems as you burn for an eternity in a special circle of hell design specifically for you.

Souredstoneshasasouredpebble Thu 25-Jul-13 11:58:01

It's terrifying how much debt is utility debt.

gotthemoononastick Thu 25-Jul-13 11:59:48

Souredstone..had to google.Afraid not,just realised that I did get it all after all...laughing!

FreudiansSlipper Thu 25-Jul-13 12:00:11

when people have been coping fine with their wage and then get made redundant (and insurance will not cover all payments) or they company goes bankrupt then they struggle to find a job paying the same money, then maybe they are ill or there are other changes in circumstances that are beyond their control (the economy, the cost of living rising) as much as they want to be responsible for themselves they at times need a little help and sadly where the banks were willing to help (of course for profit) they are not so willing so this is the gap that these companies have filled that make a lot more money from people in these situations (like myself) than the banks ever did

ComposHat Thu 25-Jul-13 12:03:12

how it services bad debts if it doesn't charge Wonga's high interest rates

Plague of locusts? Flood? Senfong the Parish priest wnd the old gimmer who plays the organ round with a baseball bat?

BridgetBidet Thu 25-Jul-13 12:04:48

I took out a Wonga loan this month because I've been on holiday and struggled to eke my money out to the end of the month. I borrowed £100 for 2 days and it cost me £7. I would rather do that than borrow off friends or family and be embarrassed. A credit union wouldn't have done that.

It provided a useful service to me in that situation.

CuChullain Thu 25-Jul-13 12:05:16

*Failure to keep up with your repayments may result in the loss of your home and/or plague, pestilence, famine, the requirement to cut off your hair or sacrifice your first born to the Lord Almighty, or your own death in some barbaric old testament way, in which case that is just the start of your problems as you burn for an eternity in a special circle of hell design specifically for you.

CuChullain Thu 25-Jul-13 12:05:42

Opps, double post

Monthly interest rate is not APR/12. Interest compounds. You need the twelfth root - anyone got a calculator...?

Souredstoneshasasouredpebble Thu 25-Jul-13 12:09:54

I wonder what the rate is of a payday loan compared to the interest and fees charged for an overdraft from a bank.

If you needed £100 would you rather pay a one off £7 to have that money or the continual interest of an overdraft, or the up to £35 fees per day for an unauthorised overdraft?

squoosh Thu 25-Jul-13 12:10:53

On average payday loans charge £25-£30 per £100 per 30 days.

squoosh Thu 25-Jul-13 12:11:50

What bank charges £35 per day for an unauthorised overdraft???

Souredstoneshasasouredpebble Thu 25-Jul-13 12:13:04

Have you never been charged by your bank for going overdrawn into an unauthorised overdraft? Daily fees equivalent to the one off fee of a payday loan

squoosh Thu 25-Jul-13 12:14:03

I've never heard of £35 per day charges from a high street bank.

Souredstoneshasasouredpebble Thu 25-Jul-13 12:15:15

I think it's Lloyds that has, or had, rates that high but could be wrong

Rhino71 Thu 25-Jul-13 14:06:21

Banks are still charging £30 for missed direct debits and £30 if you go aver your overdraft. Payday loans are cheap in comparison. I was charged £60 for going £3 over my overdraft and one missed DD for £14.
Banks are the parasites not payday lenders. Short term borrowing from payday lenders works out a LOT cheaper than any bank. The key is to pay it back straight away. If you do not pay it back straight away that’s when the trouble starts. They shouldn’t t be lending to people without finances to pay it back in the first place but that’s a completely different argument to the APR being charged.

Twirlyhot Thu 25-Jul-13 14:27:24

Banks have changed their rules to pay off the huge amounts they have had to cough up over misselling PPI. A £25 per day charge for an unapproved overdraft is now common.

That doesn't mean that places like Wonga are acceptable.

Twirlyhot Thu 25-Jul-13 14:28:18

I know Santander and HSBC both charge at least £25/day.

GrimmaTheNome Thu 25-Jul-13 14:38:12

If the CofE can offer a viable alternative to these slightly-tamed sharks, then it seems like a good use of their premises.

I can imagine the CofE getting tied into knots because a few people may object on scriptural grounds to 'moneylenders in the temple' . But presumably the genuine desire is to help people not to profiteer.

TabithaStephens Thu 25-Jul-13 14:39:16

What is the church going to do when people fail to repay their loans?

Will they be as convenient to use as Wonga etc? Will people be able to apply online and have the money in their account within an hour?

Sorry but I don't see this working. I don't see the kind of people who get into trouble with Wonga loans being likely to deal with the church.

GrimmaTheNome Thu 25-Jul-13 14:41:03

Just thought of something - I know that Muslims avoid all usury, and so have different means for financing mortgages etc (no idea how they do it) - do they have any mechanisms for helping people who need loans that the CofE could learn from?

Threewindmills Thu 25-Jul-13 14:41:12

I would be absolutely delighted if they managed to get rid of this type of company. It preys on the poor.

Allthingspretty Thu 25-Jul-13 15:27:35

I think its about time the church stepped up and adressed the real problems faced by people and not just,imo ,pay lip service to them.

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