UK Wonga: ". Laughing all the way to the bank "payday lender and proud of it

London Tabloid marked Errol Damelin, founder of online lender loan sharks go high-tech Archbishop of Canterbury said Justin Welby and Wonga company as it violates the biblical prohibition on usury. Despite the jabs, Wonga has attracted financial support from established Silicon Valley venture capital firms such as Accel Partners and Partner GREYLOCK, and the site has plans to expand in the U.S. "We are in the middle one of the biggest shake-up of any industry, this is what happens when digital opposed to financial services, "says Damelin. Wonga loans "under control, and short term. These are all things that are not traditional credit "why Wonga loan as much as $ 1,500 ($ 23,000 for a business) at a price said to exercise just under 1 percent per day .. In loans, $ 600 a month-long personal, borrowers will pay approximately $ 190 in interest and fees plus a monthly rate of 31 percent. Wonga typical customer is a middle-income revenue with cash flow problems. They applied for a loan online and approved or rejected in a matter of seconds, Damelin said. The company, which has 450 employees, claims made over 7 million in loans since 2007. UK consumer protection legislation requires Wonga publish an annual interest rate of over 4,000 percent. The company said the rate is misleading, because it does not borrow money for more than a month and not compound interest. South African-Born Damelin, 43, founded the Wonga (Australian slang word for cash-English) in 2007 after selling another company he started, Supply Chain Connect. Wonga pale blue logo is splashed on a double-decker bus, and the company sponsored game show on TV. In October, Wonga sign four-year marketing agreement with the football club Newcastle United. Newcastle deals criticized by local politicians, consumer groups, and the Muslim Council of Britain, who warned that the player can violate Islamic sharia law with Wonga-brand jerseys.Wonga growing rapidly and so its not needed loans. Revenue more than tripled to about $ 280 million from 2010 to 2011, while the repeal for debt "uncollectible" almost quadrupled, to about $ 116 million, according to the latest financial data and manage files of Companies in UK , a government agency that tracks private UK company. Damelin said the increase in non-performing loans are expected to have rapid growth and toning algorithm that companies can use to assess the eligibility of credit. New software for Web scratches more than 8,000 data points, including Facebook (FB) and LinkedIn (LNKD) activity, and nearly two-thirds of online loan applicants rejected, Damelin said. The company has a $ 69 million revenue in 2011, up from $ 18.6 million a year earlier, according to the Administration of Companies. Bad credit apart, Wonga considered leading candidates in Europe to go public and it will be worth more than $ 1 billion this year in terms of sales or share acquisition, according to the Advisory Master technology consultant. "Fair to say that the company is studying various options" to give back to investors venture capital, Wonga chairman Robin Klein. Running to convert the District leafy Primrose Hill London with standard equipment glass-walled living Silicon Valley meeting room, a Nespresso machine, and gymnastics sessions Damelin of Wonga pair of home. Contrast Fancy homes with traditional storefront payday lending long run to down-and-out runs London.Wonga also operates in Canada and South Africa. The U.S. debut is "agenda," says Damelin, although the lending regulations vary from country to become a major obstacle. Wonga and expansion plans as U.S. regulatory climate has become less friendly to the payday lender. Consumer Financial Protection Bureau considering tighter regulations short term lender, Director Richard Cordray said on February 26. Services "based on reuse of product" and can be "debt trap," he said. In England, the Financial Conduct Authority, the government's new consumer watchdog has launched later this year, have the power to cap interest rates for payday lenders.Damelin said his company is an ethical business. Wonga is filling needs some quick cash to customers who might otherwise store their bank accounts, incurring the steep, and small businesses largely ignored by traditional banks Bring said him. "There are costs, in pounds, to have access to cash early," says Damelin. He took the criticism of his business quietly, partly because it will spread awareness of the company. "The politicians and the people who lost is quite useful," he says.The Bottom line: Wonga, which will support the venture capital firms of Silicon Valley, be worth more $ 1 billion have decided to go public.

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