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Is this the News Splash for Wonga.Com before the Fall!

Discussion in 'BlackHat Lounge' started by steelballs, Sep 24, 2012.

  1. steelballs

    steelballs BANNED BANNED

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    Is this the News Splash for Wonga.Com before the Fall!

    [​IMG]

    There is mass of publicity in the UK tabloids re

    Wonga.Com

    The news is showcasing :-

    ? Highlighting Mega Profits
    ? Fast Cars
    ? Mansions and Luxury Homes


    Is this history repeating itself and can we now expect the police to move in on what may be ?WhiteCollar Crime? ? like Tax Evasion ? Fraud who knows a lot of crimes could be possible prosecution options?

    One relevant comment:-

    Anyone who thinks the big profits Wonga announced this week is a sign of a healthy British market needs their head examined.

    This type of lending is toxic. Every day I get an email from one of my constituents who is in financial difficulty as a result of a short-term loan.

    There?s hundreds of these companies and some of them are bleeding communities dry.

    Source:
    http://www.thesun.co.uk/sol/homepage/news/4552294/Luxury-homes-of-fatcats-who-tripled-their-profits-with-4000-payday-loans.html
    http://www.dailymail.co.uk/news/article-2207554/The-astonishing-homes-Wongas-fat-cats-tripling-profits-4-000pc-payday-loans.html

    Is this the News Splash for Wonga.Com before the Fall!

    Comments?
     
  2. G-S-T

    G-S-T Executive VIP Jr. VIP

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    *****...
     
  3. jimbobo2779

    jimbobo2779 Jr. VIP Jr. VIP Premium Member

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    Just another example of the rich getting richer off the back of the average (read:stupid) person. If people cannot learn from the crash that pretty much everyone experienced then we really are in trouble.

    It doesnt take a genius to figure out that borrowing £100 today and paying back £140 next week is just an absolute terrible terrible idea but so many do it, I have family members and friends that are broke now and if they had just thought about going without for a couple of weeks they would not owe half of their pay packet every month to these blood suckers.

    This is the problem, these people dont just get one PD loan in really rare circumstances they get them regularly so they can spend their money a few days before they get paid. The next month they get one a few days earlier until they are eventually paying these companies most of their paycheck every month and then suddenly they are dependant on these "services" to pay other services.

    Its a shame but its human nature, people want to borrow quickly and therefore these companies will lend them it at extortionate interest.
     
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  4. SEOWhizz

    SEOWhizz Power Member

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    In many cases the type of people applying for unsecured loans don't have any other alternative due to poor credit. High street bank have declined them. At the street level, there are very few alternatives. You either have big credit companies like Provident or the government preference for the not-for-profit Credit Unions or online lenders. I've spoken to many people on local Council estates and Credit Unions are not their main preference for quick cash.

    The small/medium sized family run home credit businesses that have been passed down for generations that offered 'reasonable' rates have been mostly driven out by OFT red tape and many have been bought by the big lenders like Provi. Less choice is bad for consumers. Loans sharks are thriving in these conditions and regulation (by the OFT) for this type of unsecured lending means very little to unlicensed lenders.

    I spoke to one pensioner living on limited funds on an estate and he said that his bank were charging him £30 a day just for being a few pence overdrawn. These levels of extortionate APR are nothing more than a form of legal loan sharking under the thin veneer of a respectable High Street bank.
     
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    Last edited: Sep 24, 2012
  5. steelballs

    steelballs BANNED BANNED

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    Two excellent informative and knowledgeable posts by jimbobo2779 and SEOWhizz thank you both for your valued input!

    I should like to add that the honchos who run many of these typical outfits live large often in a style reminiscent of gangsters yet the government and regulators keep renewing their trading license - which is nothing more than a disguised extortion tool to rip money from the poor and needy! Plus of course the foolhardy and irresponsible too!