Debt danger from new iPhone app

15/01/2010

Consumers have been warned to take caution if using Wonga's iPhone application (app) to manage debt.

Wonga, an online lender, has launched an Apple app which allows consumers to borrow money instantly.

Joanna Elson, from the Money Advice Trust, told Metro that she questioned the legitimacy of the product.

Ms Elson 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."

Wonga's iPhone application allows credit of up to £1,000, but the high interest rate means that within six months this could turn in to £2,861 if not repaid.

The lending company is already established online and aims to compete against banks and other lenders by offering a quick service which can transfer credit within minutes.

Tags; Income Worries and Debt,

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