Wonga is a 'force for good’, founder claims

The chief executive of Wonga has defended the payday lender by claiming it is “a powerful force for good in the financial world.”

Errol Damelin said that the company aims to challenge “the tired and incompetent banking industry” and dismissed claims its million-plus customers only use his service because they are “without options”.

bebo5:  disgusting company.  

anonuk: Wonga is a "force for good" in the world. Like Goldman Sachs "doing God's work"?

david craig: Is it April 1st? Wonga is a force for good! Multimillionaire Mr Coe's Olympics were good for Britain! Robert Mugabe is a democratically-elected president! Immigration is good for Britain says the laughable, asinine Office for Budget Responsibility

Palaestina: Minitruth seems to be working flat out these days.

TheJimFoster: Damelin and Hurwitz are both jews. And their business is usury. These are facts Daily Telegraph, not opinions.

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mike200: Damelin is a bloodsucking leech of a man. Why can't he run a company that charges fair and commercial rates? Because he and his ilk feed off the poor like the nasty greedy  pigs they are. Scum.

bill40: I popped into a Wonga office to borrow a biro. I have to give them 170 back by next Friday.

politically_incorrect: I actually had the misfortune to work with a payday loan company for a short time, and I can confirm they are amongst the most deceitful and unscrupulous business people around, even when dealing with each other. It is a national disgrace that they are allowed to operate at all. BTW, many of their victims are actually students who are desperate for a bit of cash to supplement their student loans. Why do they lend to students? Because thtey know if all goes wrong the parents will pick up the bill. I heard that from one of the managers. On leaving I reported the company and their practices to the ICO and the Office of Fair Trading as I beleieved they were in both in breach of the Data Protection Act and were using ant-competitive practices Don't be fooled by the funny adverts on television: these people are just loan sharks with a website

kingorry: The problem is the high street banks don't offer a solution for people who need a five day loan (presumably since credit cards are meant for this) and no independent company is going to bother lending £100 for a week at 20% APR (interest of 40p). So either outlaw them or let them get on with it.

Simxn: The problem is NOT that someone else won't lend money at a lower rate on other terms, the problem is that society is now dependent on credit to the extent whereby to live on just the money you have is an anathema to many. Credit should be difficult to get, especially after the economic crunch of 2007. With the exception of mortgages, most people shouldn't be living by this means. Pointing to the banks to 'solve' this is not the answer.

Dacorum: kingorry They make most of their money by re-lending to the same people or by rolling over the loans.   Thus if you had to pay off a pay day loan with interest the next month, the chances are that you would have to take out another loan before the end of the month, probably for a bigger amount.  It is easy to see how a small pay day loan becomes a big pay day loan. Given that pay day loan companies LIE about these being short term loans, because most of their business is repeat borrowers, there is scope for High Street Banks to take on these borrowers and make a decent return without charging exorbitant interest rates.

kingorry: But the trouble is the high street lenders cannot take these people on because of regulation. That is why people go to Wonga etc.

WrinklyOldGit: The chief executive of Wonga has defended the payday lender by claiming it is “a powerful force for good in the financial world.” Yes, just like Adolph Hitler was good for Anglo-German relations.

pamery: Apart from its business model of usury, Wonga has been involved in a whole range of abusive practices: defamatory tweets against campaigners who oppose payday loans; raiding the bank accounts of people who hadn't even taken out a loan from them; using threatening language and wrongly accusing debtors of fraud. Wonga's business model, based on lending at usurious interest rates, would be illegal in most large economies.  In the UK,  far from it. The company's founder greases the wheels of commerce via large loans to David Cameron's conservative party, and the Church, instead of condemning usury, actually invests in it. Damelin will up sticks from the UK once he's raked in his millions. But we should thank him for bringing the extent of the corruption of the country's business and political elite out into the open.

tomfrom66: Yes, I am surprised Osborne hasn't offered millions in guarantees against losses.

Caledonian_Comment: An APR of 58% should be illegal, never mind 5,853% -

houman:  who decided which rate is legal? In an open economics and capitalist market no one can decide which rate is legal or not but forces of market. UK is not a soviet union with governmental dictated policies. Dont forget that.

VSLVSL: True, but it does now appear that payday lending is being run by the Russian mafia.

Poppy Palais: @houman:twitter But we don't live in an open capitalist market. There are rules and regulations governing all types of trade, including price controls on, for example, the water industry and the railways. The reason we have legal loan-sharks is that they contribute to political parties and have other connections to politicians.  If we did live in a capitalist economy, RBS would no longer be in business.

mike200: Stupid remark.

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