The Archbishop of Canterbury, Justin Welby, has declared war with a company that offers short term loans with a high interest. He has told the company that he intends to challenge and push it out of business by promoting non profit credit unions.
The Evil Called High Interest Lenders
Wonga, the businessman, is one of Britain’s most popular high interests, short term loan providers. Customers are charged with an interest rate, which when expressed annually, comes to about 5853%. The loans are given for an amount less than £1000 and for a repayment period up to five-six weeks. There is a growing discontent among the British public against these money lenders. The industry is also facing an investigation by the Competition Commission. High interest money lenders are also in the face of a worldwide scrutiny, into their operations.
The Easier Alternative
The Archbishop has said that the Church is planning to launch shortly a not for profit cooperative society. The society will provide its services within the community, by the members pooling together their savings and offering, low interest loans, to each other. The government of UK has also announced its plan to develop credit unions as a safer alternative to high interest lenders.
Wonga has accepted the Archbishop’s challenge insisting he has always been an accountable lender and his company, a very influential company in the development of the industry. Wonga stated that he would welcome innovative approaches from the competition so that the people will have a much wider alternative set, for their financial problems.