Leaked letter reveals Wonga thought it was worth £15bn

[Martin@AS Financial]

"Embattled payday lender Wonga predicted the firm would have been valued at £15bn by 2015 once it had floated on the stock exchange, a leaked letter reveals."

Leaked letter reveals Wonga thought it was worth £15bn | News | Money Marketing

[vetran]

"Embattled payday lender Wonga predicted the firm would have been valued at £15bn by 2015 once it had floated on the stock exchange, a leaked letter reveals."

Leaked letter reveals Wonga thought it was worth £15bn | News | Money Marketing

well it would of been if they hadn't had their wings deservedly clipped.

[cojak]

I love the comment:

You're a loan shark. With a website.

Well said that commentator!

[SpontaneousOrder]

I love the comment:



Well said that commentator!

Loan sharks break people's legs when they don't pay. Wonga is just like any other lender - where the rate increases as the loan term decreases. otherwise they wouldn't make any profit, and without such lenders people wouldn't be able to obtain emergency short-term loans.

[cojak]

Loan sharks break people's legs when they don't pay. Wonga is just like any other lender - where the rate increases as the loan term decreases. otherwise they wouldn't make any profit, and without such lenders people wouldn't be able to obtain emergency short-term loans.

Breaking legs? How very vulgar! (and rather 20th Century...)

There's more than one way of breaking the law...

Wonga's fake legal letters passed to police | Business | theguardian.com

[barrydidit]

Breaking legs? How very vulgar! (and rather 20th Century...)

There's more than one way of breaking the law...

Wonga's fake legal letters passed to police | Business | theguardian.com

Industry standard tactics:

Banks DID intimidate customers with fake debt collection letters, admit bosses | Daily Mail Online

[SpontaneousOrder]

Breaking legs? How very vulgar! (and rather 20th Century...)

There's more than one way of breaking the law...

Wonga's fake legal letters passed to police | Business | theguardian.com

I vaguely remember that now, and won't argue your point in that sense. To be fair, I do also see how it's the kind of service that will attract vulnerable (or just stupid) people. But at the same time I can see it as a legitimate service that people may need from time to time - and such a service couldn't exist at normal APR levels. Especially as doing business with poor people is more expensive.

[vetran]

I vaguely remember that now, and won't argue your point in that sense. To be fair, I do also see how it's the kind of service that will attract vulnerable (or just stupid) people. But at the same time I can see it as a legitimate service that people may need from time to time - and such a service couldn't exist at normal APR levels. Especially as doing business with poor people is more expensive.

If the service didn't exist then people would adjust.

If the risk is so high that you need 4000% APR then I suspect the risk isn't worth doing.

[sal]

If the service didn't exist then people would adjust.

If the risk is so high that you need 4000% APR then I suspect the risk isn't worth doing.

Loan sharks existed long before Wonga and the like and will keep existing until there is demand for their services. It's usually the demand that creates the supply not the other way around.

Personally i agree that 1000s% APR are a bit excessive, but like any other market - the price of a good/service is as much as someone is prepared to pay for it. It's not like they are hiding the excessive APRs at lest the regulators are taking care of that, the rest is free market.

[d000hg]

If the service didn't exist then people would adjust.

If the risk is so high that you need 4000% APR then I suspect the risk isn't worth doing.

People would adjust if you couldn't get mortgages or buy fresh pineapples, that doesn't mean there aren't markets for them.

Speaking of mortgages, super-high rate very short-term loans are often used here aren't they (bridging loans)?