Loan Company Wonga Slammed For Targeting Students
The National Union of Students (NUS) has labelled short-term loan company Wonga as ‘incredibly irresponsible’ after the company targeted students for their high interest loans with an APR of 4214%.
Wonga regularly advertises its loans on television pitching them as ‘payday loans’. However, the company have today withdrawn the page citing ‘misunderstandings’ as the reason for the controversy.
The BBC reports that Wonga have stated that they will continue to accept loan applications from students in work. The NUS have slammed the company for encouraging students to ‘live beyond their means.’
The controversy was sparked after Martin Lewis of moneysavingexpert.com posted the page from Wonga’s website on Twitter. Outraged users described the company as ‘morally bankrupt’ branding the move ‘disgusting’.
Wonga pitched their short-term loan as the perfect solution to buying flights to the Canary Islands for a mates holiday if you do not have the money available to pay for it.
Students have today been urged to avoid the temptation of instant cash and to consider the repayments that will need to be made. 4214% is representative of the annual interest rate but the company still offers an outrageous interest rate when compared with regular student loans which come with a rate of 1.5%.
Here at Save the Student! we stress that it is important not to be tempted into taking out loans of this sort. They are deceiving and can be financially crippling for people in full-time work as well as students. Even though Wonga have taken down the page and apologised, we suggest that nobody should use Wonga now or at any point in the future. If you are short of cash and need ways to bring in extra money then check out our student money makers.