Property News · January 12, 2012

Warning over Wonga's 'predatory' student loans offer


Consumer Credit Counselling Service and NUS voice concerns as payday loans company aims to attract students to its 4,214% APR lending serviceLoan company Wonga has been accused of being “cynical” and “predatory” after suggesting students take out high cost short-term loans to buy plane tickets to the Canary Islands.The company, which offers small loans designed to be taken out over short periods of time, makes the suggestion in a marketing page on its website where it suggests its loans may have advantages over official student loans. However, it does not mention that while it charges an annual interest rate of 4,214%, the current student loan rate is just 1.5%. Continue reading…

Source : theguardian.com
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