Hmm, I am well aware that people might come across situation where they need money asap and because of their circumstances the only solution is going to the loan shark.
But what situations would that be and what would be the consequence if you didn't have that money (in UK)?
If you become unemployed or suddenly can't continue working for health reasons there's gov. programs to take care of you.
If you're terminally ill and can't work, gov. (/insurance) takes care of you (HNS).
If you don't work are a student and can't continue studying you can still pause, work some and then get back to it (it should be possible in most cases, right?)
So what kind of situations/ppl. does that leave for those loan sharks? I imagine that the vast majority is people who can't afford stuff, but still desperately want it, NOW.
So those firms cater mostly to those people who can't moderate themselves/are blatantly stupid/ignorant.
Since those people probably have horrible payment moral/practices (and therefore can't get the money anywhere else) then why shouldn't a financial institution overcharge them?
If we lived in the third world I wouldn't make that argument, but we don't and as shitty as their business is, it's also sort of legitimate and doesn't really pose a thread to the customer's existence/(physical) health.
This is kinda where I'm coming from.
Basically, companies like Wonga claim on two types of people, the desperate and the ignorant.
You go to a company like Wonga when:
-You're living payday by payday, and need an advance to cover an unforeseen expenditure
-You are unaware of the ramifications of borrowing money from them and not being able to pay it back in the tiny window they provide
-You have your priorites mixed up, and think that you need a sum of money immediately to cover things like presents, holidays, school-clothes, whatever
-You're too ashamed to ask for help from family/friends
-You don't have time to apply for welfare, or your financial instability is not deemed bad enough to qualify for it
If you fail to pay it back for too long, they take everything of value to you
Legal loan sharks