Church of England's Welby embarrassed by Wonga link.

A few days ago the Arch Bishop of canterbury Justin Welby told Wonga (a pay day loans company the ones that charge 3000% apr) that he would try and force it out of business by helping credit unions compete against the firm.
I really liked this idea seeing pay day loan firms prey on the poor, but then It came to light that the CoE actually has invested money in Wonga .
He is a little embarrassed by the situation to say the least.
BUT good on the CoE for trying to compete against these vile companies which charge 3000% apr.

More can be read here.

www.bbc.co.uk...

reply to post by boymonkey74


Personally I don't think the small investment will make much difference, £75,000 isn't that much for an investment and it was an indirect one also. Shame that it happened though but it shows honesty with the church in the swiftness they have admitted this investment.

I too liked the idea of the Church of England helping more ethical money lenders out-compete the likes of Wonga, too many of these companies exist these days and the rates are extortionate, I just cannot see how they can effectively help without huge investments. Its not a lack of buildings that money lenders struggle with it's a lack of money!

Maybe the church should just lend money itself or create a church sponsored company that will do it on their behalf, it will be more ethical as a money lender. Doing this could bring unethical dilemma's in the church's eyes also so I can't imagine it happening.

How rich is the Church of England? Does it have the financial power to out muscle lenders with billions if that is what it's goal was?

reply to post by RAY1990


They have 5.3 billion worth of investments.
I dislike any and all churches etc but I despise these pay day money firms more. This sums them up.

reply to post by boymonkey74


In the same boat as you on this, I hate these payday loan companies TV is stuffed with them it's just going too far and although I dislike churches and organized religion I know they would be much more ethical about money lending.

5.3 billion pounds is a lot of money but what I'd like to know is how much can they or would they invest in this idea, so far we have heard they might help small borrowing firms and also rent out church premises. Its not enough but I guess its a start.

At the end of the day this whole thing has only got attention because its the church, lots of people want to take the likes of Wonga and big banks down a notch or two. Remember the Bank of Dave?

"Can I have it in like coins, because I know it's worth more than paper money I'm switched on" Priceless that from your video you linked

Originally posted by boymonkey74
reply to post by RAY1990

 

They have 5.3 billion worth of investments.

I don't know if I'm reading you wrong, but you seem to be implying that they have 5.3 billion quid invested in this company, which is incorrect. From your article:

The amount of Church money indirectly invested in Wonga was about £75,000 out of investments totalling £5.5bn, according to the archbishop.

That equates to about 0.0001% of their total portfolio -- it's not even what we would consider to be a rounding error, and "indirectly" means that they didn't invest in the company, they invested in a money fund or something that invested in the company.

A tempest in a teapot, though I agree that payday loan companies should be run out of town on a rail.

reply to post by adjensen


You are reading it wrong, In total they have 5.3 billion in investments
I was answering rays question in how rich they are.

Originally posted by boymonkey74
reply to post by adjensen

 

You are reading it wrong, In total they have 5.3 billion in investments

I was answering rays question in how rich they are.

edit on 26-7-2013 by boymonkey74 because: (no reason given)

I thought the same thing at first but then it clicked you were answering my question at the end of my post

I always figured the Church of England (Protestant) was poor compared to the Catholic branches, they could easily start a money lending scheme but again it's the ethics that I can imagine being a huge stumbling block. Like for instance say a family couldn't pay it's loan any time soon, would the church allow bailiffs to take possessions?

That is why I figure they will only rent out church premises and maybe invest in small lending companies as they have so far stated, anything else is too much work and might backfire morally.

All that being said religious institutes have been some of the best money lenders in history, Islam itself has a non-corrupt method of loaning money. Putting the religious part aside these institutes could provide a decent moral way of loaning.

Just my few pence on this

But wonga.com are a family friendly business, run by a couple of harmless old ladies. I've seen them on the telly. I'm sure if you don't pay back these gentle old ladies won't want to repossess your goods.

reply to post by woodwardjnr


I know disgusting isn't it.
The government has been to slow in looking into pay day loan companies and there practises, they have promised more regulation but the bulk of it comes in 13 months time.



Desperate people will do desperate things to put food on the table, including getting loans of these scumbag companies.
Education is the key here I think educate people to not over spend educate people to live within their means.

reply to post by boymonkey74


One of Cameron's advisors left his position to become a lobbyist for Wonga.
www.guardian.co.uk...

Downing Street has been challenged by a campaigning Labour MP to answer a series of questions after an adviser to David Cameron resigned his post to become a lobbyist for the payday lender Wonga.