Wonga: the actual price of a pay day loan. One the payday loan firms that are biggest, Wonga.com costs a representative 4,214% APR.

Wonga: the actual price of a pay day loan. One the payday loan firms that are biggest, Wonga.com costs a representative 4,214% APR.

Photograph: David Levene for the Guardian

W onga.com’s business design is unremittingly cheerful. Submit an application for certainly one of their loans that are online, supplied the job is prosperous, you will get a few delighted communications, dotted with positive exclamation markings, offering a free account associated with the progress regarding the loan. “Great news! The amount of money shall be to you in a jiffy.” And only a little later on: “Great news! We could verify ВЈ100.00 has just kept Wonga and it is winging its option to your money during the speed of light (well, very quickly anyhow).” Repay it, and you should get a text that is grateful tells you: ” Many Many Many Thanks! We have simply gathered our Wonga payment with no hitch and we also’re all smiles.”

The business’s television and radio adverts have likewise light-hearted feel.

On tv, a trio of gurning puppet pensioners dance to accommodate music and give an explanation for destinations associated with the Wonga model. The business’s other key advertising message is transparency, however these adverts make no mention of “representative” 4,214% APR put on loans.

When you look at the four years because the business established, the company has soared and an overall total of around 3.5m short-term online loans were made; the loan that is average ВЈ260 together with optimum is ВЈ1,000, initially for no more than 1 month. Read more