When payday loans were riding high in the United Kingdom, there was one name on the lips of the population. Even though there was an entire industry of payday loan companies offering money and welcoming clients, it seemed as though the media and the people in the street only knew one name. This meant that Wonga was seen as the public face of payday loans.
When the industry was booming, but people were raging against these companies, Wonga was the firm that received most of the anger and venom. Of course, they were also the company that received most of the money, which meant that the firm were probably more than happy to keep on doing what they were doing.
Since those heady days, the payday loan market in the UK has shrunk and it seems as though the reliance and dependence on companies like Wonga is also waning. The company has announced that its losses in the last year have doubled, and they are feeling the shakedown of tougher regulations in the industry.
Add to the fact that Newcastle United FC, the team sponsored by Wonga, has just been relegated from the top flight and you have a company that doesn’t have its troubles to seek. It is not as though the plight of a football team will be the focus for people at the head of Wonga but when it comes to public perceptions, the fact that everything Wonga touches turns to negative is going to stick in the minds of plenty of people.
Big Losses for the Former Payday Loans Champion
The company announced that their pre-tax losses grew from a level of £38.1m in 2014 to a figure of £80.2m in 2015. This is a big jump and it is easy to see why the company is toiling at the moment but they have claimed that 2016 will see a turning point for the firm. If there is no reversal of this downward trend, the company could be in serious trouble so there will be plenty of people in the organisation who hopes that this is the case.
Of course, there will be plenty of people outside of the organisation who have nothing positive to say about Wonga and who will hope the company continues to toil. As the public face of the payday loan industry and sector, it is easy to see why so many people have a large distrust and dislike of Wonga and this isn’t something that is going to go away or be repaired in a short period of time.
In fact, even when no one seems to be talking about payday loans anymore, the natural reaction for people discussing Wonga is to have a negative opinion on the firm.
Wonga were badly Hit by New Laws
Ironically one of the biggest issues for Wonga was the tightening of the laws which meant that they could no longer provide payday loans to people that couldn’t afford them! It seems ridiculous that a company was able to act in that manner and now find that they are unable to make a profit by solely providing services to people who can pay for the services.
This is a big factor in why there will be very little sympathy for the company, especially from people who have suffered in their dealings with the organisation.
While many people believe that payday loans have no place in modern society, it is important to remember that not all loans are the same. Traditional loans can provide a great level of support and comfort to people that finance assistance and of course, guarantor loans are a good way to obtain a favourable loan at short notice.
There is a need for the individual to find a guarantor that is willing to vouch for them but as long as that happens, there is no reason why a person cannot benefit from an attractive rate of interest and a better working relationship with a company. This is where a guarantor loan can seem like a world apart from a payday loan and anyone who finds themselves unable to obtain a traditional loan should ensure that a guarantor loan is their next option.
The fact that Wonga appears to be cleaning up its act has to be seen as a positive step but of course, there is still a long way to go before that firm will be recognised or hailed as anything like a positive role model.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.