Consumers slam loan company

Payday loan and short term money lender, Wonga.com, has come under fire for promoting “financial freedom” for students by offering loans that have a 4,214% APR rate. With students generally unable to find the time to work while studying, the repayments are be crippling for those that are already trying to cut spending and watch their finances. The loan company was using Twitter to encourage students to take loans as short-term relief from their money woes.

Wonga.com claims that student loans, which are backed by the government, encourage students to borrow too much, even though those loans are rated at 1.5-5.3%. As students are generally known for buying the latest gadgets as well as needing money for books and material, it’s easy to get carried away but with short-term loans, that need repaid within a month, it can cause financial problems and live beyond their means. As student loans should be used for living costs and necessities, many people find that they overspend and with Wonga.com being their to add more debt, the move has been slammed by many.

Financial experts find the promotional activity of Wonga.com immoral and uncouth, but Wonga.com retorted saying that all loans should be thought about wisely and as their loans offer a short-term relief from payments, it can be handy for those that need money fast and have no other way of getting hold of £100-1,000 within a few hours.

Although offering students loans isn’t Wonga’s main focus, the website was amended to stop promoting their loans to students and more focus is being put on the customers that will benefit from short-term and payday loan companies. The company stated that no more Tweets would be released that were directly aimed at students and have withdrawn their involvement in that practice.