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

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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.

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.

*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.

It's terrifying how much debt is utility debt.

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

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

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?

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.

*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.

Opps, double post

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

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?

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

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

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

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

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

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.

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.

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

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.

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.

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?

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

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.

People willingly take loans, why should payday loan companies be banned so long as they are clear about high interest rates?

What ever happened to personal responsibility?