www.iva.co.uk

Seems Wonga.com have been using target advertising to uni students via their website [:0][:0] OFT are not happy chappies at all (I bet). APR 4,214.

"We do not believe working, adult students should be excluded from a popular credit option.
Wonga spokesman"

As if students don't have enough to worry about, now the legal loan sharks are after their custom.

The APR is no worse than many places as the loans arent meant to be long term but they must show an annual rate,so effectively nobody pays the 4000000000% quoted everywhere.

Its the lack of affordability checking that I have issues with.

Paul

Payday loan and short term loans are utterly vile companies, they hope people do cycle into debt with them month after month! I work in suicide prevtion and are seeing people who attempt and complete suicide being involved with these types of short term loans that spiral until they dont know how to manage it anymore. Same for the new spate of 'log book' loans that have popped up! The prey on peoples misery! [:(]

The payday loans firms will flourish because the mainstream banks are not lending as freely.

If I went to the co-op and asked for a 500 loan til payday I would be told to go away,at least nowadays the smallprint is more obvious,but if you are desperate enough you will fall into the trap.

Paul

I agree Paul - I dislike the companies anyway and the Wonga advert I think is totally wrong!!!

If you are desperate though, you will got to these companies.

I could be wrong but i strongly believe if i was denied credit at an early age i wouldn't of got into the mess i got myself into. The govt should ban all credit until your at least 21!

A barclaycard at 18 was my downfall, i remember how great it was at first, but looking back it was the start of a crazy 10 years!

The 'offending' web pages have been pulled by Wonga. So their original statement of it being "morally sound" as they vet each applicant on their merits and ability to pay back the loan seems to hold no water!
I normally slate the social media, Facebook et al but with such a strong sounding board the OFT has been able to keep on top of this potential trap and give advice to the NUS and others.

I was actually fine at 18 - I had to have a guarantor for my first car and car loans were the only thing I had for a few years. It was when I had an Access card (remember them?) that the rot started to set in.

Why don't you like Facebook Merlin?

Facebook! allows the faceless nonentities to act in a way that they would never do in a face to face conversation. The principle in it's self is fantastic, I wish it was around when I was posted out in Germany and the other 3 corners of the world, having a conversation via snail mail just doesn't work as well as something like Facebook. I suppose it is more the morons who use it badly than Facebook per-say. I actually include my Daughter in the 'moron' statement as far as Facebook is concerned, some of the drivel she tells us about is just cringe worthy.

I love Facebook - I've reconnected with friends I lost contact with years ago and 'met' a lot of my forum friends which I think is great. I make sure my security is high and anyone who sends me a message that I think is dodgy then I don't accept them.

I dont know about being denied credit but if at any point someone had asked me if I could really afford this or that it may have highlighted a problem.

Bah,I still spent it though!!

Paul

I agree that the payday loan companies will flourish, however once people already in debt and not using it as a very short term loan are caught in that cycle then they will ultimately have to face up to their debt problems. There really is no escape from the pay day loan trap than to seek advice.