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To be fair to Wonga, I imagine that they try really hard to "scan out people with no hope of repaying the loan". After all, their business model rests on being
by cm2012 12y ago
To be fair to Wonga, I imagine that they try really hard to "scan out people with no hope of repaying the loan". After all, their business model rests on being able to do that!
- frogpelt 12y agoIn a lot of cases here in the States, pay day lenders also do title pawn which is where the person hands over their car title as collateral for a small loan. The lender then repossesses the car if the debtor doesn't pay.
- rahimnathwani 12y agoThis type of title loan is _much_ less common in the UK.
- rahimnathwani 12y agoDanBC may be suggesting that people can't _completely_ repay the loan, but instead need to keep refinancing it forever. Effectively they would just be paying interest and fees, the total amount of which would dwarf the initial capital, which would never be repaid. I don't think legal lenders typically do this. It's not nice, and it's not likely to generate positive word of mouth.