PUBLIC ACCOUNTS COMMITTEE HOOK LOAN SHARKS during questions before the Public Accounts Committee.
I ask you, can this be legal, ie; 4,200% interest per year if you get a loan from WONGA, that’s the one with the weird puppets on TV. and they have dealt with over a million loans over five years.

WONGA have been highlighted about chasing loans up from people who are having difficulty paying what they owe? At 4,200% annual interest and the present economic situation there’s little wonder people are finding themselves being threatened with debt collection agencies.

Let’s put this into perspective; If you borrowed £100 and left it for a year before paying it back then that £100 would have mushroomed into an unbelievable £4200.
Henry Raine, Wonga’s head of regulatory affairs told Yahoo news media that WONGA customers earn around £20,000 and the average first time loan is around £180 but the average size of loan for all customers is £257.

Stella Creasey, the Labour MP seems to be at present the only MP concerned about these companies who are willing to profit on people’s hardship with these unbeleivable % rates. A couple of other MP’s have voiced their opinions in one of our earlier reports on these legalised loan sharks.

Our opinion; we reported this story some time ago so this was destined to happen and unfortunately there will be many more after the latest government plans to force poor people into this borrowing cul-de-sac. As long as these loan sharks with criminal percentage% rates which are not governed and controlled by realistic and proper rules and regulations then we can expect many more people who have no chance of meeting their original committments.

You can read further by going HERE, and reading some of the general comments from the public voices.