Heard the new Archbishop of Canterbury (soon to be our local vicar, pretty much) on Radio 4 at lunchtime saying that credit unions should be able to compete with Wonga while offering APRs of 70% or 80%, rather than Wonga's 5,500%. However, a quick calculation shows that if you're doing two week loans with a 7.5% default rate (which I believe is pretty much Wonga's averages), you need to charge an APR of 556% merely in order to cover your defaults, without taking into account administrative overheads or the actual cost of the capital.
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