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£220m is a lot of Wonga to write off

TORPC
Grafter
Posts: 5,163
Registered: 08-12-2013

£220m is a lot of Wonga to write off

Payday lender Wonga writes off £220m of customer debts
[quote= www.bbc.co.uk/news/business-29454777]The payday lender, Wonga, is writing off the debts of a third of a million customers after admitting that it made loans to people who could not afford to repay them.
The move follows an investigation by the Financial Conduct Authority, which took over the regulation of the payday loan industry in April.
5 REPLIES
JohnCT
Grafter
Posts: 59
Registered: 02-10-2014

Re: £220m is a lot of Wonga to write off

Are you surprised, I am not judging by the borrowers in their advert! Wink
beeceegee
Rising Star
Posts: 511
Thanks: 31
Fixes: 1
Registered: 27-11-2012

Re: £220m is a lot of Wonga to write off

Almost by definition anyone who has to use Wonga can't afford to repay the loan. It's at best a dodgy business plan - they can't even use a baseball bat to extract payment like a good old-fashioned loan shark
Community Veteran
Posts: 6,824
Registered: 27-10-2012

Re: £220m is a lot of Wonga to write off

Yep - large write offs are an inevitability when you lend to the sub-prime.
When we start seeing slower economic growth and increased defaults, then Wonga is going to go belly up.
nanotm
Pro
Posts: 5,671
Thanks: 108
Fixes: 1
Registered: 11-02-2013

Re: £220m is a lot of Wonga to write off

the people they featured in the news reports though all expressed that they new when they took out payday loans through Wonga because they could knowing full well they couldn't afford it, to me this is rewarding stupid people for being stupid, fair enough the company did something illegal and was told to make amends by writing off the cash outstanding and /or refunding those affected, but its a drop in the ocean of their profits, making a couple of billion a year in profits just shows this, personally I would of preferred the company were fined and the outstanding ammounts were recovered for distribution by the treasury, they don't deserve rewarding for being feckless with other peoples money !
just because your paranoid doesn't mean they aren't out to get you
Moderator
Moderator
Posts: 16,528
Thanks: 1,780
Fixes: 124
Registered: 06-04-2007

Re: £220m is a lot of Wonga to write off

Nice one... take out a loan you know you can't repay then get 30 day's behind and have it written off.
I agree that Wonga should have been fined, maybe even frozen the interest on the loans but ensure the loans are still repaid.

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