Wonga May Be Dead in The Water, But Loan Sharks Continue to Circle

Wednesday 29 May, 2019 Written by Roger Gewolb, Fairmoney

UK's cheapest money comparison site FairMoney has sent us this:

This is what FairMoney has to say:

-One in five Brits say they are in their worst financial position to date

-Three in five are concerned that the price of food will continue to rise

The short-term lender Wonga has recently gone under, yet there seems to be a number of other unscrupulous short-term lenders who are filling the void they left.

An independent investigation revealed that a number of short-term lenders are demanding that borrowers pay back loans with crippling interest charges. The investigation looked at how much a £1,000 loan would cost a borrower from 12 lenders advertising openly on the internet.

The findings show that for a short-term loan, borrowers are being asked to pay between £1200 and £2000 (the maximum amount permissible under current regulations.) After interest, the total amount a person can expect to pay can be double the original amount that was borrowed. Ultimately, failing to stay punctual about repayments can end with severe financial penalties.

Brexit broke me: more than 10 million Brits are in their worst financial position ever:
- 21% of men saying they are in a bad financial situation because of Brexit, compared to 19% of women.
- a quarter (24%) of Brits said their average disposable income per week is less than £30
- 5% said their average disposable income per week it is £0 or less
- Brits in London are some of the most concerned about the price of food and produce
-43% Brits don’t understand how Brexit will affect their household bills

Dr Roger Gewolb is the Executive Chairman of FairMoney, the loan-comparison site that surveyed 2000 UK adults on their financial situation.

"Payday loan providers have their place in society. But for the 10 million Brits who feel they are in the worst financial situation of their lives, some lenders are charging as much as 200% of the initial loan
- these new sharks are sinking their teeth into bank accounts of anybody who treads in their waters. We’re a decade on and things need to have changed.
The reality of loan-shark lenders is that rather than easing money worries, they are forcing many customers into even greater hardship."