Church of England to take on payday loan companies - compete them out of business.

[Infinite Chaos]

The Archbishop of Canterbury has warned the online lender Wonga that the Church of England plans to force it out of business - by competing against it.
--snip--

Archbishop Welby, a former financier who sits on the Parliamentary Commission on Banking Standards, has previously lobbied for a cap on high interest rates charged by loan companies.

--snip--

"I've met the head of Wonga, and we had a very good conversation," the archbishop told Total Politics magazine.
"I said to him quite bluntly that 'we're not in the business of trying to legislate you out of existence; we're trying to compete you out of existence'." link.

About time too, nice to see the Church of England become aggressive against companies like Wonga etc
Local credit unions used to be popular and community friendly ways to make sure poor people could get low cost loans but they have largely faded into the background from their earlier position in the community.

 

[gunner]

Re: Church of England to take on payday loan companies - compete them out of business

About time too, nice to see the Church of England become aggressive against companies like Wonga etc
Local credit unions used to be popular and community friendly ways to make sure poor people could get low cost loans but they have largely faded into the background from their earlier position in the community.

I suppose it pays to have an ex-business executive, as the new religious chief :lol:

Paul

 

[Rainman05]

Re: Church of England to take on payday loan companies - compete them out of business

I suppose it pays to have an ex-business executive, as the new religious chief :lol:

Paul

Wonga is basically legal loan-shark business. It offers high cost short term loans, no questions asked. You can literally get 1000pounds with almost 50% interest in a day online.

That is loan-sharking at its finest, only now it's legal. Even banks, who are another breed of loan-sharks, are legislated to require some verifications and documents before they lend you any money.

So it's good that at least someone is going to fight them, if the govt won't.

 

[Spriggs05]

Re: Church of England to take on payday loan companies - compete them out of business

About time too, nice to see the Church of England become aggressive against companies like Wonga etc
Local credit unions used to be popular and community friendly ways to make sure poor people could get low cost loans but they have largely faded into the background from their earlier position in the community.

To be honest I think its a bit of a joke, seeming as how they are a religious institution and if they are able to do this then they are obviously hoarding a lot of wealth which could have been put to better means beforehand. However at least they are doing it for a good cause rather than something pointless.

 

[gunner]

Re: Church of England to take on payday loan companies - compete them out of business

Wonga is basically legal loan-shark business. It offers high cost short term loans, no questions asked. You can literally get 1000pounds with almost 50% interest in a day online.

That is loan-sharking at its finest, only now it's legal. Even banks, who are another breed of loan-sharks, are legislated to require some verifications and documents before they lend you any money.

So it's good that at least someone is going to fight them, if the govt won't.

I am familiar with how Wonga works, thanks.

Paul

 

[CanadaJohn]

Re: Church of England to take on payday loan companies - compete them out of business

I certainly hope that the Church of England is also going to give up their status as a charitable entity and all the tax advantages that status holds. If you want to get into business and compete with other businesses, be prepared to have all you operations subject to tax laws that exist and the regulatory regimen as well.

 

[gunner]

Re: Church of England to take on payday loan companies - compete them out of business

I certainly hope that the Church of England is also going to give up their status as a charitable entity and all the tax advantages that status holds. If you want to get into business and compete with other businesses, be prepared to have all you operations subject to tax laws that exist and the regulatory regimen as well.

That's an interesting point, and one which I'm sure they've given some thought. A seperate branch perhaps?

Paul

 

[CanadaJohn]

Re: Church of England to take on payday loan companies - compete them out of business

That's an interesting point, and one which I'm sure they've given some thought. A seperate branch perhaps?

Paul

I don't know about UK tax laws, but I'm pretty sure here in Canada that a charitable entity isn't allowed to do anything remotely related to for-profit enterprise nor can they use charitable funds to enter into a business enterprise at a loss or to break even - all activities have to be with an intent to earn donations to be used for charitable purposes.

 

[William Rea]

Re: Church of England to take on payday loan companies - compete them out of business

I am surprised that the Co-Operative organisation hasn't moved into this.

 

[Infinite Chaos]

Re: Church of England to take on payday loan companies - compete them out of business

I certainly hope that the Church of England is also going to give up their status as a charitable entity and all the tax advantages that status holds. If you want to get into business and compete with other businesses, be prepared to have all you operations subject to tax laws that exist and the regulatory regimen as well.

I'm not sure that the Church of England is specifically going to open offices and charge interest under the name of its own credit union - one of the things I read was that the church would offer premises and support for existing credit unions.

Unfortunately the news of the OP has become blurred by the revelation that the CofE is unknowingly a financial investor in the very company it has specifically set out to challenge.

 

[Helix]

Re: Church of England to take on payday loan companies - compete them out of business

Wonga is basically legal loan-shark business. It offers high cost short term loans, no questions asked. You can literally get 1000pounds with almost 50% interest in a day online.

That is loan-sharking at its finest, only now it's legal. Even banks, who are another breed of loan-sharks, are legislated to require some verifications and documents before they lend you any money.

So it's good that at least someone is going to fight them, if the govt won't.

the US is infested with businesses like this, too. Only slightly better than the mob.

 

[Manc Skipper]

Re: Church of England to take on payday loan companies - compete them out of business

Wonga, which offers loans of up to £1,000 arranged over periods of up to 45 days, previously quoted a typical annual percentage rate (APR) of 4,214%.

The embarrassing part is today's revelation that the Church of England has some pension fund investments which own a bit of Wonga. The Archbish is ticked off to the Nth degree.

 

[RGacky3]

Re: Church of England to take on payday loan companies - compete them out of business

I certainly hope that the Church of England is also going to give up their status as a charitable entity and all the tax advantages that status holds. If you want to get into business and compete with other businesses, be prepared to have all you operations subject to tax laws that exist and the regulatory regimen as well.

If it's a non profit ... it's still regulated as a non profit.

If a non profit puts a for-profit buisiness out of buisiness ... well, too bad.

 

[CanadaJohn]

Re: Church of England to take on payday loan companies - compete them out of business

I'm not sure that the Church of England is specifically going to open offices and charge interest under the name of its own credit union - one of the things I read was that the church would offer premises and support for existing credit unions.

Unfortunately the news of the OP has become blurred by the revelation that the CofE is unknowingly a financial investor in the very company it has specifically set out to challenge.

Good point - I don't know all the rules about charities and their ability to "invest" donations prior to use of donations for the charity's designated purposes, but I find it odd that a charity can risk donated monies on non-secure investments, such as businesses.

 

[Wiggen]

Re: Church of England to take on payday loan companies - compete them out of business

Wonga, which offers loans of up to £1,000 arranged over periods of up to 45 days, previously quoted a typical annual percentage rate (APR) of 4,214%.

The embarrassing part is today's revelation that the Church of England has some pension fund investments which own a bit of Wonga. The Archbish is ticked off to the Nth degree.

What happened to the football player (soccer for most of us here) who refused to wear his team's uniform because they were sponsored by Wonga? I think he is a Muslim and he claimed it was a violation of his religious principles.

 

[Higgins86]

Re: Church of England to take on payday loan companies - compete them out of business

What happened to the football player (soccer for most of us here) who refused to wear his team's uniform because they were sponsored by Wonga? I think he is a Muslim and he claimed it was a violation of his religious principles.

he got pictures gambling in a casino so it kind of made him look like a hypocrite plus other Muslims on the team had no problem with the sponser, so he has agreed to wear it.

 

[Wiggen]

Re: Church of England to take on payday loan companies - compete them out of business

Thanks. I know there were other muslims on the team who weren't boycotting. Still, I suspect most of us, if given a choice as to who's name we wanted to wear across our chest, would not choose a loan shark company.

 

[Infinite Chaos]

Re: Church of England to take on payday loan companies - compete them out of business

Thanks. I know there were other muslims on the team who weren't boycotting. Still, I suspect most of us, if given a choice as to who's name we wanted to wear across our chest, would not choose a loan shark company.

None of the muslim players complained previously when "Virgin Money" was emblazoned on their shirts previously either.

 

[Wiggen]

Re: Church of England to take on payday loan companies - compete them out of business

You might not like banks or lending institutions much, but they're hardly in the class of payday loan sharks.

 

[Infinite Chaos]

Re: Church of England to take on payday loan companies - compete them out of business

You might not like banks or lending institutions much, but they're hardly in the class of payday loan sharks.

From a western perspective what you say is correct but under Islam, earning interest (which is intrinsic to most banks) is outlawed so whether it's 2% interest with Virgin Money or %6000 per annum with Wonga - it should be the same. Either way, it's hypocritical for muslims to take such stands when they previously had no problem or worse still (in the eyes of their religion) to be gambling in casinos.

 

[Wiggen]

Re: Church of England to take on payday loan companies - compete them out of business

Agreed.