Wonga Releases 12 Portraits Film...What Does A Movie Has To Do With A Payday Lender?

Wonga released a 28- minute film, which apparently did not feature its name, nor the puppets that are associated with its site and ads. Wonga seems to be sympathizing with its exploits that are in pain accusing the payday lender of reaping money from consumers who are regarded as financially unstable. The release of the movie comes at a time when Wonga is under pressure from the MPs accused it of imposing extra-hefty interest rates that are as high as 5,853%. 

Whereas the movie may give the impression that consumers are happy with the payday lender, this might not be the case. If those who feel they have been exploited by this lender could be featured in a similar movie, it would be tears of agony and bitterness. But, who is to blame for the pain caused by payday lender to consumers?

Gary Tarn, the BAFTA-nominated filmmaker was granted a free rein to produce a film for Wonga without an editorial control by the lender. This would create the impression that the lender was not biased in the content of the film. The series featuring 12 portraits of Wonga customers talking of their passions has been cited as an expression for many who feel that these loans have helped them greatly but their voices have never been heard.

All we hear is the tainted image and accusations of preying consumers of their hard-earned money by payday lenders but few seem to be excited about these lenders. The anguish and pain consumer are experiencing overwhelms the joy expressed in the 12 Portraits film footage. Whether it is a consolation gimmick or voice for the majority who have benefited and are happy about this lender, the feelings about payday lending are far from happiness.

Wonga is the most profitable payday lender in Britain, but its profitability may be resting on bitter feels. After all, much of the revenue generated by these cash advance service providers is derived from the fees and charges levied on consumers who rollover balances or take multiple loans. Payday loans are not intended for long-term financial solutions in the first place.

Any payday company capitalizing on penalizing its consumers for failure to repay their first loan as agreed on the term has a hidden agenda. Payday loans should only be borrowed once and should be repaid after the given period of lending. However, lenders lure consumers to become repeat customers or rollover their balances, and this is where the problem starts.

These lenders should discourage rolling over of balances or obtaining multiple loans within a given period because after all, the blame for preying consumers erodes their reputation and image. It might have been easy for Wonga to find 12 people who could speak, something passionately about the company, but what about the thousands of consumers struggling with heftily priced loans? Who would help them air out their voices? 

The subject of payday lending is very sensitive, and although the lenders say, the loans are for emergencies, consumers need to be informed on what is important and what is urgent. Every other financial need might be important but not an emergency. Many consumers who borrow Wonga payday loans have misplaced priorities and misunderstanding of what the implication is. A payday loan should never be rolled over and multiple borrowing should never be entertained. These loans are too costly to bear whenever there are rollovers and multiple borrowing.

Nevertheless, it cannot be assumed that these loans do not benefit consumers. A few people can attest to the fact that payday loans have helped them in a way they could never have been assisted . This should be praised and acknowledged but majority of borrowers are never happy with structure of the lending system and they feel reaped off their money. The 12 Portraits may just be another corporate video that is deemed to conceive the truth from the eyes.

Unfortunately, even if people can see the joy in the hearts of those who passionately praise the work of Wonga, the film might not erase the ill feelings of thousands of consumers who in one way or another feel they have been exploited. Consumers should borrow wisely and understand that payday loans pose a real danger to their finances. Installment loans are the new form of payday loans, which seem to be growing fast but although they attract less interest rates, they are also highly priced. Wonga loans can only help you when you are in critical need of cash but not just another emergence.