For Wonga’s borrowers, the monetary effects of lacking repayments had been terrible.
The financial consequences of missing payments were terrible for Wonga’s borrowers. Wonga ended up being a lot more than happy to move over loans all things considered, at an APR of over 5000%, rolling over financing (indefinitely, if at all possible) had been unquestionably with its interests. certainly, its enterprize model actually depended for a significant percentage of individuals continually rolling over loans at excessive rates of interest. However in July 2014, the FCA announced intends to cap the attention prices that payday loan providers could charge and restrict the amount of times that loan might be rolled over. Wonga’s business design disintegrated.
