Cash-strapped staff are signing up for expensive payday loans in their lunchbreaks because they don’t have time to queue at a bank or wait on a phone call. Payday loan company Wonga says it has received a record 200,000 applications between noon and 2pm since January — more than double the number at the same time last year. Wonga says this is because workers don’t have time for conventional alternatives. Instead, while sitting at their desks, they apply for loans of up to £400, which can be paid back within a month. If approved, the money is paid into their accounts within minutes.
But Wonga charges 4,214 per cent APR, so £100 repaid in 20 days costs £126.31. Miss the repayment deadline and Wonga charges a flat £20 and continues to add interest on to your account at the rate of 1 per cent a day for a maximum of 60 days. It says a debt of £100 would soar to a maximum of £187 if someone made no payments for two months or more. But Citizens Advice says workers would be better off spending their breaks buying a sandwich than resorting to....Read more here---> Wonga: Record applications for payday loans at lunchtime | This is Money