Linda Riordan, Labour MP for Halifax, has hit out at short-term online loan sharks preying on desperate families as Tory cuts begin to bite. She said: “They are preying on some of the poorest people in society – cashing in on making poor people even poorer.”
Wonga.com, which advertises heavily on television in the north of England, charges interest at an extraordinary annual rate of 2,689 per cent. The firm, which is backed by Balderton Capital, one of Europe’s biggest venture capital funds, promises customers “an instant decision” and “cash in your bank in 15 minutes”. Customers borrowing £199 for 15 days repay £234.75, while those borrowing £400 for 30 days pay back £525.48.
Ms Riordan added: “The interest rates these companies are charging are disgraceful. It is time we said enough is enough.”
