Wonga collapses into administration

A bit of good news

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Couldn’t happen to a nicer bunch of money hungry exploitive @*%#s

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Wonga, the payday lender […] is on the brink of collapse

And nothing of value was lost.

Tara Kneafsey‎, Wonga’s chief executive, informed fellow directors several months ago that an increase in the volume of complaints about loans made before new rules were introduced in 2014 had triggered a big rise in compensation payouts.

I seriously can’t believe that people start companies on the basis of breaking the law or wronging customers. Surely, if new regulations suddenly put your business at risk, then maybe your business shouldn’t have existed in the first place?

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I knew the interest on their loans was big but I’ve just looked at the website and it’s insane.

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Martin Lewis had a good article about Wonga in 2011. Here is the jist.

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He does point out you cannot have a loan for a year with them, but it shows how ridiculous their APR was back then, 4,214% representative APR. It is still awful now, but it is “better” than it was.

How can they go bust when they ripping people of with high interest rate?

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Because they’re having to pay people back for ripping them off!

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I’m gonna take out a loan and not pay it back now they are gonna go bust :joy:

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Just short their shares. It’s what they would have wanted.

Oh wait - did it never even float?!

This is great news!

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Taking a slightly contrarian tack here - but where will people go for emergency loans once Wonga fold? Backstreet loan sharks?

There’s loads more legal ones, it’s just Wonga are the poster boy for exploitative lending

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Do the others not charge exploitative rates?

Yep same as Wonga but Wongas main problem was historically they rolled the loans over many times https://www.independent.co.uk/money/loans-credit/roll-over-loans-curb-agreed-by-wonga-6296653.html

Lending stream/Drafty are on a big advertising push at the moment. Still huge interest but not as bad as back street loan sharks

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QuickQuid
Amigo
Bamboo

There’s loads of other sharks out there

You think they’d exist if there were cheaper alternatives for the people that use them?

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Here we go… :joy_cat:

http://www.wonga.com/apply-unavailable

Only sad thing is the loss of jobs tbh

Probably relaunch the next day under the name zonga without being liable for any old claims

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More than likely and I can bet you any money they have setup a debt collection agency to get back all the outstanding debts.

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Wonder what went Wong? I understand that there are many use cases where it helps people out, but I feel they do more harm than good, and for that reason I’m glad to see them go.

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