Wonga to pay £2.6m in compensation for 'unfair and misleading' practices

[vetran]

I'm against the loan sharks but that wouldn't make much sense for a loan of 3 weeks duration. There should perhaps be a maximum one-off fee (the greater of a fixed sum or % of loan value) plus a maximum interest rate + base.

the fee for the loan would be the profit. The interest rate covers the cost to the lender of borrowing the money and little profit.

[speling bee]

the fee for the loan would be the profit. The interest rate covers the cost to the lender of borrowing the money and little profit.

But for £500 loaned over three weeks, nobody could charge 20% APR + base with no fee.

[MicrosoftBob]

But for £500 loaned over three weeks, nobody could charge 20% APR + base with no fee.

Oh dear they'd have to go to a credit union and not be faced with extortionate fees, the horror the horror

#firstworldproblems

[speling bee]

Oh dear they'd have to go to a credit union and not be faced with extortionate fees, the horror the horror

#firstworldproblems

I didn't realise credit unions did three week loans. I do have a soft spot for them so that's good to know.

[MicrosoftBob]

I didn't realise credit unions did three week loans. I do have a soft spot for them so that's good to know.

Try London Mutual, ok the minimums 1 month and it's still more than a credit card but £300 for a month would cost £9 which is almost reasonable compared with the payday loan companies

[BrilloPad]

Can't we go back to the days where if you wanted something you waited until you can afford it?

It is what successful economies do...

[speling bee]

Try London Mutual, ok the minimums 1 month and it's still more than a credit card but £300 for a month would cost £9 which is almost reasonable compared with the payday loan companies

Good to know. Are there any operating in Southeast Wales that will take on customers on the rock-and-roll?

[MicrosoftBob]

Good to know. Are there any operating in Southeast Wales that will take on customers on the rock-and-roll?

Try this

[speling bee]

Try this

Will pass it on.

[vetran]

But for £500 loaned over three weeks, nobody could charge 20% APR + base with no fee.

hence the fee being the profit!

The interest reflecting the cost of supplying the money.

so say arrangement fee £50, interest 20%. Extension fee £25. Still profitable.