The Archbishop, the banker and the loan shark

“The Most Rev Justin Welby has approached Sir Hector [Sants], who also led the Financial Services Authority throughout the financial crisis, to drive payday lenders such as Wonga out of business and create a new way of thinking about finance.”

Driving the poor into the arms of loan sharks by shutting down legitimate lines of credit hardly seems like a ‘new way of thinking about finance‘…

10 Comments

  1. john77 says:

    If that was true I should agree with you but it is simply lousy writing by the journalist.
    The Archbishop is seeking to eliminate the need for wonga and loan sharks alike by providing free advice to those in debt and boosting credit unions. A number of parishes have already set up advice centres manned by volunteers as part of “Christians Against Poverty”

    • Misanthrope Girl says:

      Then I wish him well in his desire to provide an alternate source of financing for those who would otherwise turn to payday loan companies (or loan sharks) because other forms of traditional financing aren’t available to them. Can’t see him destroying the market for them though.

      • john77 says:

        “Can’t see him destroying the market for them though.”
        Nor can I, sadly – but he will shrink it and is already doing so (albeit only by a miniscule amount so far).

  2. Demelza says:

    What John said.

    His Grace wants to drive Wonga out of business by providing alternatives for their customers. Justin Welby is a clever man whose recognises that poverty is as much spiritual and cultural as it is financial.

  3. Julian says:

    Wonga is evil and should be driven out of business.

    • Misanthrope Girl says:

      How is a company which provides a service that people want ‘evil’?

  4. PeeWee says:

    and wasn’t (maybe it still is) the Church of England an investor in Wonga or one of the other loan businesses

    • john77 says:

      NO
      The Church Commissioners (now almost, if not entirely, the clergy pension fund) had (?has) an investment in a fund which held (?holds) some shares in wonga. The Archbishop was quite shocked when some nit-picking journalist found this out but he cannot dictate to the fund’s managers (free will is a theological concept). The Church of England is not, and never has been, an investor in wonga.
      I hope that if the fund does not sell out of wonga the Church Commissioners will sell out of the fund when they can.

      • And buy into the real earners like BAT and BAE if they’re clever. ;)

        • john77 says:

          No
          “the children of this world are wiser in their own generation” but pension funds have to take what you think is a long-term view (the batting of an eye-lid by Justin Welby’s yardstick) so something that will fund pensions in 2104 to new curates in 2014