Holy Wonga !

[Peter Pedant]

.

Marcus Welby BD the Archbishop of Canterbury has tripped over himself over the Wonga Crisis.

He is the one that wants credit unions to compete with Wonga ( typical interest only 2300 % ) and says that the Credit Unions - to be managed by local vicars ( oops not great stock pickers in my view ) will have to charge 70- 80 % p a interest in order to make a profit. Wow !

[sunny-dave]

Plonka

[emmie]

i posted this, this morning am

http://www.theanswerbank.co.uk/News/Question1262260.html

[emmie]

they really haven't a clue, he used to work in finance didn't he?

[Peter Pedant]

Sorry em
I was gonna post this in Business and Finance but didnt as it contains financially sensitive information.

I did scan for Wonga questions
but didnt see any

I liked the title - the sun hasnt run it has it ? - rather than the content altho the confusion with Marcus Welby MD I wd call inspired

[emmie]

i have been trying to think who he reminds me of, it will come to me i am sure.

[Old_Geezer]

So, is your point that they managed to make a profit on a vastly reduced charged percentage, or that it was necessary to change a still obscenely high rate to cover the risks involved ?

As I mentioned elsewhere the real issue is that folk are allowed to lend to folk who can not afford to borrow, and feel they need to cover the amount of defaulting borrowers by 'ripping off' those who do pay back.

Nevertheless 80 is far lower than 2300 and so could help to an extent, especially since government is unwilling to step in and legislate to protect the most vulnerable citizens.

[Old_Geezer]

"... to charge a still ..."

as I typed !

[Peter Pedant]

I certainly get the bit where 80 is less than 2300 and I thank you for the reassurance on that.


and I also get bit where you pay more interest on a higher risk (unsecured) loan - and even spreading the risk altho I am not so sure about that
[ as a landlord, rents dont work like this at all, and demanding deposits for rents I think worsens it, as I think people go into debt to pay the deposit ]

I was implying that 70% is still usury - is it comparative as in he is more usurious than I am ?


The more I see of vicars' ability to invest, the less sure I am that they should be running credit unions

oK

putting vicars up to running credit unions stretches my credibility to breaking point

[Jackdaw33]

Marcus Welby was a fictional character in a US soap. Perhaps you mean Justin Welby.