The Wonga puppets boast about ‘straight talking money’, however their discounts are more costly than credit unions.
B etty, Earl and Joyce, the puppets that are elderly Wonga.com’s beguiling tv advertisements, vow “straight talking money”. But just what they do not inform watchers is the fact that short-term loans are offered for a fraction that is tiny of’s 4,214% price – and also to those who have been rejected by their bank.
London Mutual Credit Union is leading a drive by the not-for-profit sector to just take in the pay day loan pushers. It really is providing one-to-three month loans, at CUOK!, at mortgage loan of 26.8% and, crucially, is guaranteeing cash that is instant. It claims borrowers can buy “cash when you need it quickly” with payday advances in fifteen minutes.
When compared with Wonga.com, the cost cost savings are staggering. London Mutual charges ВЈ8 interest on a loan that is 30-day of while Wonga fees ВЈ125.48 interest and charges. In addition, London Mutual imposes no add-on penalties for belated re payment, simply the interest, which on ВЈ400 is merely 27p per day.
Credit Unions table Photograph: Graphic
Just what exactly’s the catch? Unfortuitously there is certainly a rather big one it’s just available to individuals who reside or work inside the London Mutual catchment area, which covers the boroughs of Lambeth, Southwark and Westminster. Nevertheless, which is nevertheless 1.2 million people. Like Wonga, London Mutual will run a credit check into a job candidate, and, like Wonga, risk turning straight down individuals with a really record that is poor.