The Problems of Borrowing and Lending Money

Neither a borrower nor a lender be. Said Polonius in Shakespeare’s Hamlet. He’d turn in his fictional grave if he saw the number of loan companies available on the market these days!

The major problem with these companies is their demographic. If they were honestly providing a service wherein people in full time work find themselves struggling with an unexpected bill one month could borrow a small amount of money and pay it back, with interest after the next payday, then they would not advertise predominantly on daytime television. They also apply extortionate interest rates to the borrowed amount, leaving customers more out-of-pocket than they were before they got this loan.

The companies have received heavy criticism in recent months from regulators who have noticed this targeting and are implying that these companies are too tailored towards these members of society and it is actually bordering on the unfair. These companies exploit the vulnerable members of society who cannot pay back the loans and their advertisements emphasise the speed and ease of service discouraging customers to make thorough checks with regards to their ability to pay the loan back. The regulators have not reached any firm conclusions regarding the amount of interest charged but that is one of the major issues raised by customers; the adverts are carefully moulded to promote the ease with which loans are granted. This means customers give less thought to whether they can afford it or how much interest they are going to pay back; they simply see the possibility to have more money in their bank account.

That sounds condescending but it is the loan companies at fault here, the adverts epitomise the point Polonius was trying to make when he went on to say “For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry.” The loaning of money between people – regardless which side you’re on – is dangerous and one or the other becomes irate. In this world of corporate companies that lend money it is often infinitely more complicated than just ‘an irritation’ but the basic idea is there, money is too precious to be exchanged temporarily with such little contemplation.

For more information on payday loans and companies such as Wonga who are in the spotlight with regards to these advertising campaigns and the interest rates, have a read of our news articles on Wonga at http://www.customerservicescontact.co.uk/wonga-telephone-number/. Alternatively to speak with a member of Wonga customer services, Click Here for all contact details.