Tuesday, 9 October 2012

The Wonga Effect

I'm intrigued by Newcastle United's deal with Wonga.com. A company that goes to a lot of trouble to explain that its 4000% or more representative APR is unfair because it never lends money for that long. But a company that will charge you roughly a quarter of what you borrowed in interest and fees, over a one-month period. Which is quite staggering.

Still, I can understand Newcastle dealing with a company that manages eye-watering rates of change in monetary values. After all, Andy Carroll was worth - what - about 8 million? And then suddenly he was worth £35M. Quite a jump over a transfer window. Of course, it's in the long term you really see these things  have an impact. He's worth about £8M again now, I reckon.

1 comment :

  1. I don't know much about wonga, but their animated adverts are award winning.


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