Need some wonga? New loan company launches iPhone credit app – with MASSIVE interest rates
The first credit application for the iPhone will allow users to borrow cash within minutes – but at massive interest rates of up to 3,000 per cent.
Borrowers can access up to £1,000 from Wonga’s short-term loan app if they need bridging over before their next payday – the ‘payday’ loan.
But if their debt is not repaid rapidly the £1,000 could turn to a debt of £2,861 within six months.
The company claims the loans are intended to tide over customers for a few days to cover urgent expenses until they receive their salaries.
Wonga’s arrival will fuel concerns over customers being tempted by speedy, high-cost credit.
oanna Elson, from the Money Advice Trust, said: ‘We would urge the regulatory authorities to look carefully at the detail of this product, because we have concerns as to whether a person can be comprehensively assessed for credit using this service.’
iPhone users can download the app for free and must fill in a four-page application form on their mobile before being considered for a loan. Wonga promises that acceptance or refusal is then decided in seconds.
Sue Edwards, head of consumer policy at Citizens Advice, said: ‘People need to think very carefully before resorting to this sort of high-cost borrowing.’
iPhone credit card reader to launch at CES
The card reader, made by iPhone accessory company Mophie, plugs into the phone and lets users swipe credit cards. The card details are then processed by an iPhone app that handles the payments.
Mophie, a US-based company, makes iPhone cases and batteries. Their ‘juice pack’ accessory doubles the iPhone’s battery life. However, the card reader will be the first peripheral they have designed to work with an app.
Late last year, Jack Dorsey, the founder of Twitter, announced Square, his own iPhone credit card payment system. Square, which launches early this year, is a small cube which plugs into the phone and allows cards to be swiped. Square also emails receipts, allows retailers to see a photo of the customer and provides a reward system.
Card payment accessories are the latest in a range of peripherals made available for the iPhone since the latest version of the phone’s software was released last year. The software update made it possible for applications to work with peripherals, bringing the possibility, for example, of medical peripherals for the handset.