Wonga has finally collapsed - good riddance.
How you manage to go bankrupt when you are charging interest with an advertised APR over 1000% per annum is difficult to work out, unless you factor in greed and disingenuity.
Lending vulnerable members of society money at usurious rates is very little different, in my mind, to stealing from poor people.
It has been distasteful to see that some members of the press regret the loss of the cuddly TV animated characters who introduced the unsuspecting to being ripped off. Even more distasteful are the expressions of apparent sorrow for the losses incurred by the backers. Nor can I muster sympathy from the erstwhile workforce, they cannot have believed in their product or been other than aware that their employer’s practices were shoddy and unethical.
Both the FCA and the government come out of this badly. It simply should never have been possible for this product to have been launched on unsuspecting but needy customers. Regulatory reaction was slow, the FCA should have moved as soon as Wonga ads hit our TV screens.
Claims management companies are credited/blamed with finishing Wonga off. Claims management companies are often unloved but, if true, they clearly serve a purpose.
Bring back the usury laws?
We have an affiliate company which buys debt, leaving on one side that we do not deal in consumer debt, from an ethical standpoint, we would never assist a company of this nature.