The Church is to take on Wonga: Congratulations about time somebody did!

Not much chance of getting their money back then Edward? lol

I think it's a great idea, but it still puzzles me why the banks don't launch similar schemes. Surely they can see that there is money to be made whilst actually helping their customers for once?

Credit Unions will survive and reach great heights on the back of the money grabbing likes of 'Wonga' and so they should.

Remember 'Bank of Dave' he certainly kicked butts! Well done Dave and well done to the Archbishop of Canterbury for instigating this, even though at the moment you have a little problem with your former investments.

Unfortunately, people in desperate financial straits will go to lenders like Wonga, because these are the only lenders who will lend to desperate people. A more prudent lender would not lend to such people.

Wonga's business model assumes a large percentage of borrowers will default on their loans - hence the extortionate interest rate. It is of questionable morality, but it is a business model that works for Wonga. Even the Archbishop concedes that there are worse lenders than Wonga.

I am sure the church credit union, if prudent,  would not lend to many of Wonga's customers, so what's the point ?

>>>Edward says: I am sure the church credit union, if prudent, would not lend to many of Wonga's customers, so what's the point?

I think that is the point Edward the Church is going to lend to them, at least that's how I understand things.

Perhaps I am hopelessly cynical, Ron, but would you lend money in the knowledge that you are unlikely to get it all back? Or would the church employ debt collectors, as I indicated earlier. It is hardly likely to enhance the 'welcome' from the Church. The sort of people who borrow from Wonga might regard the church as a 'soft touch'. Spare some change for a cup of tea please, Vicar !

Even Jesus of Nazareth said the poor will always be with you, when his disciples urged him to sell the jar of precious ointment to feed the poor, rather than allow the woman to annoint his feet with it.

In the soceity who are less fortunate that are unable to cope with the pressures of the economic turmoil sometimes maybe through no fault of their own. it is difficult to comprehend just what goes through the minds of the people who are desperate for money whatever the reason.

Payday loans whilst solving the immediate poblem cause further problems for the future, infact this is so close to being hooked on drugs going back for the second fix time and time again.

They can hardly get out of the habit unless their circumstances change overnight. 

What is required is a in depth look at the whole credit system of the Country wereby a person who is genuinly on their last gasp for money can be assisted by an afordable loan with a reasonable rate of interest.

Failure to address the situation will only lead to an increase of muggings, robberies and over crowded jails which in the end we all have to pay for in our taxes.

So why not prevent the problem at source instead of letting the whole situation spiral out of control.  

The sad reality is that cheap credit is not available to ANYONE despite the base rate having being 0.5% for years. The best unsecured loan rate I can get from a high street bank is around 20% APR. I will not borrow at this rate, never mind at the 10,000%+ APR of Wonga and the like, so I do without the luxuries (I run a 14 yr old car and buy my cameras second-hand).

Credit is not the answer. It got us into this mess, and all the signs are that we are heading the same way again. Gordon Brown and his chums wrecked our country by public debt. Savings are at their lowest level ever. At the risk of sounding old-fashioned, people should learn to live within their means. The benefit cap of £350/week for a single person and £500/week for a married couple should be enough for people to live on without going to Wonga or the proposed Bank of the Church of England. 

 PS Just seen your post James, Spot-On

Hi James, how's things?

I agree, it's no good living beyond your means, because what happens if you lose your job, no way of paying your debts, then taking out these quick fix loans gets you into deeper trouble