What went wrong with payday lender, Wonga?

What went wrong with payday lender, Wonga?

You may have heard the news that Wonga, the loans provider, has gone into administration. This is despite only six years ago, the founder of Wonga describing the payday lender as a “platform for the future of financial services”. However, clearly, it does seem that the future did not work out as the had wished it to. But what actually went wrong? We have previously written about what Wonga going into administration means for payday loans, but in this guide, we are going to be discussing where Wonga went so wrong to result in administration. In August 2018, Wonga held […]

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Payday Loans or Credit Unions?

Payday Loans or Credit Unions?

In recent years, there has been a growing call for local authorities and other public bodies to provide their staff with the option of a payday loan when they are struggling to make it to the end of the month. This just seems like common sense to a lot of people in today’s world and given the virtue of Councils with the status of stability. They also have access to low interest rates by which employees could seek the advantages of when they find themselves strapped for cash. What is a payday loan? A payday loan is a form of […]

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Reasons to complain about your payday loan

Reasons to complain about your payday loan

If you have taken a payday loan out, you may be due compensation. You will also be aware that a payday loan is a short term form of credit which is designed to tide you over until you receive your next pay cheque. Despite the bad reputation payday loans get in the press, the majority of payday lenders do practice lending ethically against the standards and rules set by the Financial Conduct Authority (FCA). This means that it is the lender has a responsibility to check certain things and provide you with certain information before they go about approving your […]

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Do payday lenders check your credit?

Do payday lenders check your credit?

As part of the general practice of ethical lending, payday lenders will check your credit score and credit history. If a lender does not check your credit, unless they specify they are a ‘No Credit Check Lender”, you have a right to complain if you find yourself unable to pay back the loan. The Financial Conduct Authority (FCA) is responsible for setting the rules of the lending industry and they expect the lenders to carry out a credit check to make sure that the borrower in a position to be able to pay back the loan with all the interest […]

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What Wonga going into administration means for payday loans

What Wonga going into administration means for payday loans

As you may be aware, Wonga has recently been forced to go into administration. The lender has stopped taking on new loan applications as they find themselves on the brink of collapse. In late August of 2018, Wonga held emergency talks which the Financial Conduct Authority (FCA) about what the impact of their demise would mean for their existing customers. Furthermore, it was unclear what it would mean for the investors of Wonga, which included Balderton Capital, Accel Partners and 83North. In this guide, we will explore the overall impact that the fall of Wonga is likely to have on […]

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Why haven’t I received the interest rate advertised for my loan?

Why haven’t I received the interest rate advertised for my loan?

Have you recently applied for a payday loan and have been accepted for credit, but are confused as to why you haven’t ended up receiving the stated interest rate for it? Perhaps this has left you feeling particularly dumbfounded as you have homeowner state, are in steady employment, and you even have a good credit score, meaning that you expected to receive the rate advertised. As a result, you may be wondering why this has happened. In this article, we take a look at the main reasons why you may not necessarily end up receiving the rate seen on a […]

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You need to ‘close’ your loans, not just ‘settle’ them

You need to ‘close’ your loans, not just ‘settle’ them

Many people believe that if their loan is settled, then that is just as good as closing the loan. You may find that if you settle a previous debt and go to take out a new loan, you may be rejected due to a ‘settled’ sign showing up on your credit report. It is fair to say that most of us do not actually know what it means to have “settled” on our credit reports. Surely “settled” has a positive connotation, right? Wrong! Having this present on your report is not a reflection of you being responsible with your borrowing. […]

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Three paydays till Christmas – how you can plan ahead

Three paydays till Christmas – how you can plan ahead

It might still be summer, and winter may feel many moons’s ahead, but did you know that it is just 16 weeks away, meaning that for the majority of people who are working across the UK, that equates to just three or four paydays left in total? It can often be the case that we put off putting away the pennies for the Christmas period thinking that it is far too early to start saving, yet we can often end being in the same situation year in, year out, where we’ve suddenly left it too late, and end up with […]

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Does getting a payday loan affect credit

Many people who are needing money to help them out are choosing to actively avoid payday loans because they believe that in taking out one, they are going to severely damage their credit score. But, in actual fact, simply taking out a payday loan and respecting the agreement will not damage your credit score in the slightest. However, there are exceptions to this if a particular company you deal with in the future for financial credit sees payday loans in a negative light. In this case, having one on your credit score could go against you, even if you made […]

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Do payday lenders contact my employer?

Do payday lenders contact my employer?

Many potential applicants for payday loans for bad credit are worried that when they apply, the lender will contact their employer. This is likely to be a cause of embarrassment to an applicant who is basically being outed to their employer as someone who is having financial difficulties. You can rest easy, payday loan potential applicants and borrowers alike because, your lending company will not contact your employer as part of the underwriting process. Payday lenders will only call your workplace to speak to you, not to speak to your boss. Underwriting is the process which is taken by a lender or […]

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