Wonga.com - would it work here?

arctictree

OK, Aside from the ethical issues, would wonga.com work over here?

I assume they have built their default risk into the high rates charged.

folan

i thought Wonga were here?

neris

i dont really know much about wonga just seen them on one of the channel 5 stations and have a small idea about what they do. ethically i dont think it would work in ireland. the last few years have highlighted how irish people can try to wangle their way out of paying debts

The Apprentice

Well im going to give an educated guess and say no..
We dont seem to have the minor or major regulations in getting payment from someone over there in the uk that would would work here in ireland. For example over there you have balliffs that will literally rock up and take tvs, cars, clothes, ps3 anything at all that will cover the debt however small.
Over here although there is bailiffs and sheriffs its mainly for house repossion or larger none payment to revenue etc. I just dont know if its works to the same standard that it would over there.
We see every week, people and business's getting the big **** you and not getting payment and nowt much seems to be done

StupidLikeAFox

Jesus you wouldnt want to have any scruples anyway. You would be preying on people who are either down on their luck or have a "dead cert" in the 3.45 at Fairyhouse, i'd say a large proportion of your time would be trying to wrangle money out of people who simply dont have any

antoinolachtnai

I think the bank transfer system is a good bit faster and more flexible there and this is one of the things that facilitates it.

It is really just like cheque-cashing, short term credit for people who can't get credit anywhere else.

A lot of the high rate actually comes from the admin costs. Arranging lending is not cheap, especially for small loans, where the various fees can easily come to a large amount in comparison to the loan.

Buttercake

i reckon its been thought of a few times

Theres a couple of them here at the Providence? I think is one

Its all down to market size

Ireland 4 million vs UK 60 million

Plus getting something like Wonga setup with approval from the Financial Regular and embarking on an advertising campaign to get the word out will be more work than what its worth

The British use a far more advanced system where they can check your credit score fairly quickly and online/automated results so they can approve decline loans

I know that you dont need a perfect credit record with these lenders but you dont want to be dishing out loans to people who have never paid a loan back in their life and have no intention of doing so

RATM

Isn't there a regulation that states all moneylenders have to be vetted and licensed by the financial regulator ? Irish people lending an outfit might be classified as money lenders so each would need an individual license making it very difficult.
Perhaps if you could get them classified as investors rather than money lenders that might change things but at the end of the day they are giving away their money for it to be lent on elsewhere so I'd say the financial regulator would take a dim view of it to be honest.

And to clarify- Wonga have their IT operation here in Dublin, they are known for paying some of the best salaries in the capital for software programmers.

ontour2

Central Bank / IFSRA license money lenders and can reject license applications based on the rates charged. Some UK operations have already tried to enter the Irish market and have been refused.

celticcrash

Wonga.com 4699% apr

highlandseoghan

I think if you have money behind you it can work. You will have people with bad credit or dont have a job or are working cash in hand that cant get loans that will go to you. I think there would be a lot of expense starting off, Marketing and advertising is going to cost you a lot. Provident are the big ones in Ireland that offer short term loans and they seem to be doing huge business at the moment.