Wonga going bust

Tommy Tainant

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Jan 20, 2016
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UK's biggest payday lender Wonga 'on the brink of collapse'

Britain’s biggest payday lender, Wonga, is teetering on the brink of collapse following a surge of customer compensation claims in recent weeks that could cause it to call in administrators.

The short term loan provider has reportedly lined up Grant Thornton the accountancy firm, to handle a potential administration of the company should its board believe it is unable to avoid falling into insolvency. The report from Sky News said Wonga could appoint Grant Thornton as soon as this week.

The flood of claims facing the company relate to loans taken out before 2014, when Wonga was the poster child for outrage in the payday lending industry that resulted in rules capping the cost of borrowing. Campaigners claimed the firm and others in the industry fleeced consumers with high interest rates and targeted vulnerable customers with slick marketing.

These bastards have been responsible for so much human misery it gladdens my heart to see them go under.
 
UK's biggest payday lender Wonga 'on the brink of collapse'

Britain’s biggest payday lender, Wonga, is teetering on the brink of collapse following a surge of customer compensation claims in recent weeks that could cause it to call in administrators.

The short term loan provider has reportedly lined up Grant Thornton the accountancy firm, to handle a potential administration of the company should its board believe it is unable to avoid falling into insolvency. The report from Sky News said Wonga could appoint Grant Thornton as soon as this week.

The flood of claims facing the company relate to loans taken out before 2014, when Wonga was the poster child for outrage in the payday lending industry that resulted in rules capping the cost of borrowing. Campaigners claimed the firm and others in the industry fleeced consumers with high interest rates and targeted vulnerable customers with slick marketing.

These bastards have been responsible for so much human misery it gladdens my heart to see them go under.
I have no problem with seeing loan sharks, legal or otherwise take a nose dive onto concrete.
 
Consenting adults can have sex with whoever, but there's Hell to pay (pardon the pun) if you are talking money?
 
UK's biggest payday lender Wonga 'on the brink of collapse'

Britain’s biggest payday lender, Wonga, is teetering on the brink of collapse following a surge of customer compensation claims in recent weeks that could cause it to call in administrators.

The short term loan provider has reportedly lined up Grant Thornton the accountancy firm, to handle a potential administration of the company should its board believe it is unable to avoid falling into insolvency. The report from Sky News said Wonga could appoint Grant Thornton as soon as this week.

The flood of claims facing the company relate to loans taken out before 2014, when Wonga was the poster child for outrage in the payday lending industry that resulted in rules capping the cost of borrowing. Campaigners claimed the firm and others in the industry fleeced consumers with high interest rates and targeted vulnerable customers with slick marketing.

These bastards have been responsible for so much human misery it gladdens my heart to see them go under.

They did not research if peoples borrowing moneys from them could afford to pay the loans back, so those who borrowed would get more in debt and then no solution but to borrow more moneys, disgusting and vile, Wonga have destroyed many thousands of lives, they like sharks feed off the vulnerable and the desperate, probably there have been suicides because of Wonga so excellent they are now collapsing. The Payday Lenders should all be outlawed, this should be illegal.
 
The Guardian seems to be falling on hard times as well judging from the end of that story. :lol:

Never a lender or borrower be.
 
They had an interest rate of 1500%.
Tony Soprano would have been impressed with that.

...and apparently the government and borrowers were open to that for awhile. Why, I have no idea.
It was virtually unregulated. Only when the bodies started piling up did they take notice. There are still others out there in the same game and there is a large market of hard up people for them to prey on.
 
It was virtually unregulated. Only when the bodies started piling up did they take notice. There are still others out there in the same game and there is a large market of hard up people for them to prey on.

I would have to say defaults are a big reason they are in financial trouble.
 
They had an interest rate of 1500%.
Tony Soprano would have been impressed with that.

...and apparently the government and borrowers were open to that for awhile. Why, I have no idea.

Not just the British Government okay with that but also The Church of England owned an indirect investment in Wonga they only sell and GTFO when the Wonga scandal appear in public, very embarrassing.

Church of England still holds Wonga stake

Church of England cuts Wonga ties
 
It was virtually unregulated. Only when the bodies started piling up did they take notice. There are still others out there in the same game and there is a large market of hard up people for them to prey on.

I would have to say defaults are a big reason they are in financial trouble.
Wongas issues are the multiple compensation claims that have been brought by ripped off customers. Taking any financial product in the UK is now a nightmare task that takes forever.Getting a current account for my youngest took forever and caused me to deposit my left bollock as surety. And we were giving them the money. Wonga would have you sorted in 10 minutes and skipped any due diligence.People were given loans that they could not afford on the basis that woga would mke more money out of that. The debt would increase and poor folk would get trapped in a spiral. Many took the only way out.
 
Wongas issues are the multiple compensation claims that have been brought by ripped off customers. Taking any financial product in the UK is now a nightmare task that takes forever.Getting a current account for my youngest took forever and caused me to deposit my left bollock as surety. And we were giving them the money. Wonga would have you sorted in 10 minutes and skipped any due diligence.People were given loans that they could not afford on the basis that woga would mke more money out of that. The debt would increase and poor folk would get trapped in a spiral. Many took the only way out.

Gasp! Jihad.

There should be some acceptable middle ground. High risk loans should have higher returns. By the same token, successful borrowers should have been refunded some of the fees in my opinion.
 
Wongas issues are the multiple compensation claims that have been brought by ripped off customers. Taking any financial product in the UK is now a nightmare task that takes forever.Getting a current account for my youngest took forever and caused me to deposit my left bollock as surety. And we were giving them the money. Wonga would have you sorted in 10 minutes and skipped any due diligence.People were given loans that they could not afford on the basis that woga would mke more money out of that. The debt would increase and poor folk would get trapped in a spiral. Many took the only way out.

Gasp! Jihad.

There should be some acceptable middle ground. High risk loans should have higher returns. By the same token, successful borrowers should have been refunded some of the fees in my opinion.
We have these things called Credit Unions which generally set up in areas where loan sharks have been active.They are under resourced but do valuable work in helping people out of the debt spiral.

Certainly saving folk from these practices.

In May 2012 the company was required by the Office of Fair Trading (OFT) to improve its debt collection practices, after it was found that it had sent letters to customers in 2010 accusing them of committing fraud and saying that the police might be informed. Telephone scripts used by Wonga warned borrowers working in the public or financial sectors that their terms of employment said they should not be in debt. Wonga appealed the decision and said it believed it had grounds for suspecting dishonest conduct by the specific customers to whom letters had been sent, and that they had been sent on isolated occasions more than 18 months previously and had not been sent since. It stated that it had put in place procedures to make sure similar problems did not occur in future, and that since then it referred cases of suspected fraud to an in-house team to investigate. The phone scripts had not been used since January 2010, it said.[53] In November 2013, after being challenged repeatedly by members of parliament in a Business, Innovation and Skills select committee hearing on pay day lenders, Wonga said that they had not been censured by the OFT, but had been asked to make various changes, and that criticism by the OFT was "an open issue"; the company could not say more on an ongoing process. The practice of allowing debtors to "roll on" an existing loan was also called into question by the MPs.[54]Regulation for the consumer credit industry passed from the OFT to the new Financial Conduct Authority (FCA) from April 2014.

In June 2014 the FCA found that Wonga's debt collection practices were unfair and ordered that they compensate affected customers.[55] The FCA found that between October 2008 and November 2010, Wonga had sent their customers letters purporting to be from non-existent law firms "Chainey, D'Amato & Shannon" and "Barker and Lowe Legal Recoveries", described as "fake" in reports, to collect money from them. In some cases, customers were charged for the supposed lawyers' fees for these letters; Labour MP Stella Creasy asked why the police were not investigating.[9] This practice had been uncovered by the OFT in 2011, after Wonga was asked to disclose information about its debt collection practices.[56]"Wonga's misconduct was very serious because it had the effect of exacerbating an already difficult situation for customers in arrears," said Clive Adamson, director of supervision at the FCA.
 
...and apparently the government and borrowers were open to that for awhile. Why, I have no idea.
Very simple:
"Wonga was founded by Errol Damelin (chief executive officer) in October 2006 and he linked up with software engineer Jonty Hurwitz in January 2007"
Wonga.com - Wikipedia

Errol Damelin (born 23 August 1969) is a South African-born, Israeli/British entrepreneur and early-stage technology investor.
Errol Damelin - Wikipedia

"South African Mr Damelin co-founded Wonga with fellow Jewish businessman Jonty Hurwitz in 2006."
https://www.thejc.com/news/uk-news/wonga-boss-errol-damelin-to-quit-lending-firm-1.53608
 
...and apparently the government and borrowers were open to that for awhile. Why, I have no idea.
Very simple:
"Wonga was founded by Errol Damelin (chief executive officer) in October 2006 and he linked up with software engineer Jonty Hurwitz in January 2007"
Wonga.com - Wikipedia

Errol Damelin (born 23 August 1969) is a South African-born, Israeli/British entrepreneur and early-stage technology investor.
Errol Damelin - Wikipedia

"South African Mr Damelin co-founded Wonga with fellow Jewish businessman Jonty Hurwitz in 2006."
https://www.thejc.com/news/uk-news/wonga-boss-errol-damelin-to-quit-lending-firm-1.53608
And ?
 

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