Tuesday, 3 September 2013

Wonga make more Wonga!

Wonga has just announced that their profits are up 36% from last year and their profits have been £1m per week.(Source Sky News)

The issue is that the people that have to use these kinds of companies probably can't use high street banks due to them not having a high enough credit score. With companies like Wonga making these kinds of profits that just demonstrates that the high street banks are out of touch on their lending, otherwise companies like Wonga wouldn't be making these kinds of profits.

It is important to remember that these kind of companies charge higher APR than high street banks and some are exorbitant high and the high street banks rates would be lower than these but there is nothing stopping the high street banks lending at a higher rate than their usual rate to people that don't fit their main criteria.

To me I do believe that the banks should listen to people's situations first before deciding to lend or not. People can have lower credit score a number of reason, including never borrowing as they have always saved up for things.

The people that these kind of companies are people that need more help and should be taken advantage off! In the current situation I guess it is better for people who can't access main street banks to use companies like this rather than loan sharks.

News story here

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