I think they've been unfairly punished.
So, they made up legal companies names to threaten loan defaulters, but having then to compensate those defaulters....................
They're also having to compensate those they've charged extra for defaulting. Isn't that what banks do?
I've borrowed before, but I've known the terms and conditions and wouldn't have borrowed if I couldn't afford the repayments. I was also aware it would cost me extra if I defaulted.
I'm no fan of these 'pay day loan companies' because of their extortionate interest rates, but those that borrow from them probably can't get loans anywhere else.
Can I buy shares in Wonga?
|
|
Trouble is it's a criminal offence to pretend to be lawyer so I expect it won't be just money they are paying out...
|
|
I borrowed some money from a tertiary bank once and have regretted it ever since. It's clear from its repellent advertising that Wonga wants morons as clients.
|
>> It's clear from its repellent advertising that Wonga wants morons as clients.
>>
It certainly appears that way AC, but even morons are entitled to the same protection as the rest of us.
The PDF Charity has seen so many cases of hardship caused by loan companies like this and unfortunately it isn't just 'chavs' who use them but often people who are desperate for genuine reasons too.
I know RP has the same problem with his CAB work too.
Pat
|
I think use of the term law firm in the press reports is a little misleading in that it suggests Solicitors. In fact they were aping the sort of enforcement outfit that might have a Legal Exec or two to bolster their door2door collection/bailiff operation.
As they didn't use the term Solicitor (which is protected by law) there won't be any action by the Solicitors Regulatory Authority as might have been the case otherwise.
|
|
Do you reckon this finding will also impact on the private parking companies who send out pretend letters from lawyers to scare people into paying up?
|
>> Do you reckon this finding will also impact on the private parking companies who send
>> out pretend letters from lawyers to scare people into paying up?
Regrettably not. Wonga's offence was against the specific regulations governing lenders. If the same letters had been sent by real debt collection outfits instead of pretendy ones that didn't really exist then no offence.
Unless the 'pretend' letters in parking cases are sent by firms purporting to be solicitors without at least one partner qualified and holding a PC then nothing being done wrong. If they just describe themselves as 'legal collections' perhaps buying or taking an assignment of debt owed for parking infringements then it is, morality aside, legitimate business.
|
>> If the same letters had been sent by real debt collection outfits instead of pretendy ones
>>that didn't really exist then no offence.
It utterly bemuses me that they didn't set up a subsidiary that was a real debt collection outfit and employ a suitable person. Beggars belief, really.
|
>> As they didn't use the term Solicitor (which is protected by law) there won't be
>> any action by the Solicitors Regulatory Authority as might have been the case otherwise.
It looks as though the Law Society are suggesting offences may have been committed:
www.lawgazette.co.uk/5041905.article?utm_source=dispatch&utm_medium=email&utm_campaign=GAZ270614
The comments are quite good too.
|
>> even morons are entitled to the same protection as the rest of us.
Actually Pat they need more protection than the rest of us! Of course, they should get it.
|
>> but those that borrow from them probably can't get loans anywhere else.
The danger is that if and when Wonga and similar organisations become more controlled, disciplined and regulated, they will become more and more selective thus pushing the worst risks towards dodgier and dodgier sources of finance.
|
It's strange that we're increasingly regulating pay-day lenders (repulsive though I find them) instead of tackling the source of the problem, which is people getting deeper and deeper into debt in the first place.
Credit card companies who will hand out card after card without scruple, car finance, mobile phone providers, "0% for six months" in shops, store cards and most importantly, the COMPLETE lack of education in schools about compound interest and credit card debt.
|
>> the COMPLETE lack of education in schools about compound interest and credit card debt.
Agreed, But all a school can really do is to reinforce parental teachings surely?
How we cause that to happen is a whole other difficulty.
|
Of course I know what compound interest is, but am always far too idle to work it out.
The proper bank is quite bad enough if you are a functional moron like me (I really am, ask herself). But it doesn't charge 5,000% per annum although it feels like it.
|
>> Of course I know what compound interest is, but am always far too idle to
>> work it out.
>>
Working it out is not an issue. You merely need to (a) appreciate it when saving money or for pensions and (b) to be sufficiently wary of it when it comes to debt.
Albert Einstein: “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”
|
|
No evidence that Einstein ever said that or anything like it. Urban myth I'm afraid.
|
|
Wonga is proof the "I want it and I want it now" generation will shop until they drop.
|
>> Wonga is proof the "I want it and I want it now" generation will shop
>> until they drop.
Up to a point no doubt that's true.
What's much more worrying is the extent to which a large chunk of society are a missed shift or a day or two sick from being unable to feed themselves and pay their rent and ordinary bills. And that's before factoring in the zero hours contract and its other 'flexible labour' stable mates.
|
|
I watched a program recently about shop assistants lives in Victorian England. Pretty harsh existence of long hours and low wages. Over many years working conditions were improved, working hours reduced and paid holidays were provided. Over a few years we seem to have abolished the gains that took a century to achieve.
|
Different expectations of life though now haven't we? My parents would probably have considered themselves quite comfortably off. Nice house in a good location, kids in private education, nice car etc.
But, only one car, one telly, one phone, alcohol only on special occasions, no fridge, UK holidays, never bought anything on credit, furniture repaired rather than replaced, grew their own fruit and veg etc etc.
We want and expect so much more from life now.
|
>> I watched a program recently about shop assistants lives in Victorian England. Pretty harsh existence
>> of long hours and low wages. Over many years working conditions were improved, working hours
>> reduced and paid holidays were provided. Over a few years we seem to have abolished
>> the gains that took a century to achieve.
>>
50 years ago, the computer did not exist in commercial life. Everything was done manually.
30 years ago, not only had computers taken over commercial functions, production was starting to become automated.
Today virtually ever repetitive task (except bricklaying) has been automated and in real terms products and food have never been cheaper.
And many of those jobs have been outsourced to cheaper labour countries.
The reason Britain runs a permanent Balance of Payments deficit is because we keep selling things to foreigners. When that stops, we are all suddenly going to become MUCH poorer.Or we may export a lot more.
Funny how politicians fail to mention these facts of life.
|
It is quite sobering to consider that the whole basis of our modern western lifestyle is founded and relies upon exploitation.
We could not have the goods and services we enjoy without someone somewhere being very thinly rewarded for their provision.
We see ourselves as a caring inclusive society but in fact we only care for and include, ourselves.
We can and do by and large shrug and accept that. Maybe it can't or at least won't be any different any time soon but y'know....we maybe should be looking at it at least.
Don't want to sound like I am especially pious in these things myself but I can't help feeling a little bit of guilt now and then.
|
>> It is quite sobering to consider that the whole basis of our modern western lifestyle
>> is founded and relies upon exploitation.
>>
>> We could not have the goods and services we enjoy without someone somewhere being very
>> thinly rewarded for their provision.
>>
>> We see ourselves as a caring inclusive society but in fact we only care for
>> and include, ourselves.
>>
>> We can and do by and large shrug and accept that. Maybe it can't or
>> at least won't be any different any time soon but y'know....we maybe should be looking
>> at it at least.
The nature of the yuman beast I think, and the market is the only system that works because it reflects that.
Trickle down is not what happens in a successful market economy. Marx said it trickles up, left to its own devices, and he is right.
|
Thae case we've found as a charity are the ones where the family have all worked extremely hard all their life to keep just above the breadline madf.
No savings, no cushion and no peace of mind when the wage earner has a heart attack and ends up in hospital 40 miles away from home.
Spouse has to visit daily, pay exorbitant parking fees (£7 at Addenbrookes) fuel for 80 mile round trip, try to pay for internet and TV access at hospital for husband and keep the kids fed and bills paid on no wages.
Wonga seems like the answer to a prayer in those circumstances when all you want to do is reassure you're partner you're managing and making their stay in hospital as better as you possibly can.
Shop until they drop? Understandable for necessities like that as far as I'm concerned.
Pat
Last edited by: Pat on Thu 26 Jun 14 at 20:24
|
>> Spouse has to visit daily, pay exorbitant parking fees (£7 at Addenbrookes) fuel for 80
>> mile round trip, try to pay for internet and TV access at hospital for husband
>> and keep the kids fed and bills paid on no wages.
It's two years next week since I had my bike accident.
Visit daily, pay parking + TV and internet at hospital and keep house/home together were givens for Mrs B. She's agency staff (supply teaching) so not earning herself if she needs to be at hospital during day.
As it happened I was a Civil Servant with entitlement to 6 months sick on full pay and capacity to work at home immediately I was discharged - employer sent a laptop out as soon as my boss authorised it. Miss B was a 19yo Uni student on vac who could drive either family car. The Lad at 17 was old enough to look after himself and run errands. We had a few £k in savings/inheritances.
Kids ten years younger, no savings, no work/pay unless on site and and only SSP to rely on and we'd have been struggling PDQ.
|
They don't trumpet it from the rooftop, but my local trust has a scheme for reduced car parking charges if you are visiting a longer term patient. Buttonhole the ward sister, certainly in my local hospital she has to facilitate this.
When I was in hospital for a long period in 2010, my brother was offered this, but we have some nice free parking only a couple of minutes away.
|
Free to park at hospitals up here.
Food's still garbage though.
|
It's pretty standard to use a different name for later stages of collections.
Apparently the regulator doesn't like it though.
It is supposed to suggest to the defaulter that things are getting more serious (which they are).
I see the Student Loans Company has been doing something similar.
|
Wonga - Rudedog
