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MP: Pay-day loan firm a ‘parasite’

Date published: 02 July 2014

OLDHAM West and Royton MP Michael Meacher has branded high-interest loan company Wonga a “parasite preying on the vulnerable”.

In a scathing attack on the lender, the veteran MP said recent revelations that Wonga sent out letters from a non-existent law firm to pressurise people into repaying their debts was “despicable”, and he demanded a police investigation.

Mr Meacher said: “It is certainly not sufficient that Wonga has been forced under pressure to repay the 45,000 customers affected, when the compensation works out at only around £50 per customer.

“Worse still, Wonga charged the recipients of these fake legal letters an average of £9 each, a further total of £400,000 extracted by this rapacious firm for fabricated reasons.”

The Labour veteran went further and called for the lender to be shut down.

Mr Meacher said while Wonga was not the fundamental cause of the impoverishment that drives hundreds of thousands of persons and families to seek loans at extortionate rates of interest, but uses it to their advantage.

Comments

and when was this dodgy practice actually going on?

between 2008 and 2010.

and who was in charge of the country then?

why didn't you and your party do something about it to regulate them while you where in power mr meacher?

Understandably harsh words from Michael Meacher. I for one will be glad to see the day when this odious company is extinguished from the face of the earth - together with their ever so slightly disturbing puppets.

@fedupoldhamer - as the article states it was a recent revelation it would suggest it was covered up between 2008 and 2010

Thanks again Mr Meacher for pointing out the obvious to us all. Ah well, name in the paper again I suppose.

I’ve no doubt that a large percentage of payday loan customers don’t have too much complaint – people aren’t stupid, and the costs of payday lending are common knowledge…. I expect Wonga to enter the English language any time now, in a similar way to McJob. Take the money, pay it back, moan about how much it cost, repeat.

 

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