Wonga offers short term high cost credit (STHCC) loans at interest rates starting at over 1,200% per annum, became aware of a problem last week but did not realise until Friday that data could be accessed externally. It alerted the authorities and started to contact borrowers offering a dedicated customer services phone line for those affected.
Wonga said it was “urgently investigating illegal and unauthorised access” to the personal data of some of its customers in the UK and Poland; It is understood that the breach could affect up to 270,000 current and former customers.
The company would not disclose where the breach had taken place.
Survey reveals a worrying trend now that payday lenders have been regulated
Guarantor Loan specialist LendFair commissioned a survey which reveals that over 1.3 million adults in the UK will use or be tempted to use a loan shark in the next 10 months and this figure is expected to rise now that new regulations are in place for pay day lending. The survey was designed to highlight borrowing habits across the UK but unearthed a number of unexpected facts that include the following:
Why they might be the cheapest and fairest of the “Alternative Credit” products
When looking for a loan there can really be just one question; can I borrow from a mainstream lender (bank, building society or Hire Purchase specialist) at low, headline, rates of interest? If the answer is yes, then you don’t need alternative loan providers at all; they will be far more expensive and you should approach your bank.
If, however, you can’t borrow from this source then consider carefully where you might borrow those needed funds, your ability to make the repayments (affordability) and how spreading the loan over a period of smaller fixed payments might help your personal circumstances.
And then look at the real costs of borrowing.