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Wonga.com has been a lender of payday loans online since 2007. It s headquarters are based in London, United Kingdom. It was founded by two entrepreneurs from South Africa, Errol Damelin and Jonty Hurwitz. They saw the need for the service in the United Kingdom after surveying the American payday loan market. Like all payday loan lenders, Wonga.com is a short-term lender. Payday loans are not recommended as long term debt solution vehicles for those in dire straits. That said, Wonga.com payday loans can be a good financial fit for emergency circumstances if used sparingly and wisely. Here are the facts you should know about Wonga payday loans before you apply: • Like all banks in the United Kingdom, Wonga is regulated by the Office of Fair Trading (OFT). It also retains membership in the Finance and Leasing Association (FLA). • All Wonga payday loan applicants must be at least 18 years of age and live in the United Kingdom. In addition, applicants must have a bank account in the United Kingdom with an active debit card. They must also have a mobile phone and an email address. • Wonga.com payday loans are automated and processed digitally. There are no lenders to meet with in person and there is no paperwork to fill out or maintain. • Wonga is highly selective when it comes to payday loan approval. They run a credit check on all applicants. Roughly two-thirds of first-time applicants are not approved. • Wonga allows approved applicants to choose their loan amount and repayment period. Other payday loan lenders typically have fixed loan amounts and fixed repayment periods. With Wonga, applicants don't have to borrow more than they need and they don't have to pay interest longer than necessary. • Applicants are not charged a fee if they choose to repay their payday loan early. • Wonga offers loans from £1 to £1,000 to qualified applicants. First time applicants will not be loaned more than £400. • All Wonga payday loans, regardless of the amount borrowed, are subject to a £5.50 transmission fee to cover Wonga's costs for providing funds quickly and electronically. • Consumers may apply for Wonga.com payday loan terms for a minimum of one day and maximum of one month. (Business payday loans are available for a maximum term of one year.) • Wonga.com charges a 1% daily fixed interest fee on the amount borrowed. For example, a 15 day loan will cost 15% interest on the amount borrowed plus the transmission fee. • Wonga collects automated repayment directly from an applicant's bank account debit card on the agreed upon repayment date. • If an applicant can't repay a Wonga payday loan by the agreed upon repayment date, Wonga will try to reach him multiple times that day. If they don't receive payment by 5 pm on the scheduled repayment day, a £20 late fee will be added to the loan amount. • Multiple attempts may be made to seek all or partial payments until the loan is paid in full from the applicant's debit card or any other credit card noted on file. • Interest may continue to accrue on the applicant's account for 60 days past the missed repayment term unless a settlement agreement is reached sooner. • If an applicant does not pay Wonga the debt owed within 60 days, his account will be turned over the proper credit reference agencies (CRAs). The CRAs and fraud protection agencies may then turn the applicant's information over to debt collection agencies who will hire individuals to track him down and recover outstanding debts. At this point, the record of this investigation and default remains on file for six years whether the applicant pays up or defaults on the loan amount. Now that you are aware of how Wonga.com payday loans online work, you should have enough information to decide responsibly if their service is right for you and your financial situation. Wonga strongly encourages perspective applicants to make sure they have the ability to pay any loan back expediently. If you feel you need more advice before applying for a payday loan through Wonga or any other short-term long service, don't hesitate to contact Citizens Advice Bureau or StepChange Debt Charity. Both of these agencies offer free debt counseling advice to consumers. Sam Jones, the author, has been researching on price comparison website, uSwitch to find loans online.
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