The benign characters in the adverts from Wonga.com belie the truth behind the shocking levels of interest charged. But let’s be fair, Wonga.com are only the poster child because of their extensive marketing. Other payday loan companies that have been reported in the press this year are 24.7 Moneybox, alongside Keyes Whilock & Co., Money Mobile Ltd, Cash Genie and Valour Loans – all payday lending firms allegedly owed money by Andrew Breeze, who sadly committed suicide earlier this year, according to this article online.
It’s not just consumers who are being pounded by high interest for loans, though, as many businesses turn to online loan companies in order to fill the lending gap left by high street banks not issuing loans to SME businesses. A quick look at some sites for comparison, although not all the charges are immediately apparent:
iwoca.co.uk – £10k over 6 months, £1,400 in charges
ezbob.com – £10k over 6 months, £1,020 in charges
kabbage.com – no way to assess total charges without going through
online application process *
capexpand.com – similar to Kabbage.com, application needed in order
to understand full cost of charges **
Compare the charges above, (published/available without having to make an application), against those attached to loans from organisations like Funding Circle, (see also BEST LOANS), where £10k for 6 months costs a very reasonable total of £384.
We’ll be watching developments with interest, (there’s that pesky pun, again!).
* no connection
** capexpand and 24.7 Moneybox, are trading names of Active Securities Limited