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Wonga just got into trouble in the UK with this advert, but... Using a bank overdraft can be as expensive as a payday loan. According to "Which" Consumer Magazine in the UK, borrowing £100 for 31 days will cost £30 with a Halifax authorised overdraft or £20 with some Santander accounts. Borrowing the same amount for a month with Wonga would cost between £20 and £37.
The Advertising Standards Authority upheld the complaints, saying it was misleading by implying a representative APR of 5853% was "irrelevant". The authority said the advert must not appear again in its current form. In the advert, the puppets said: "Right, we're going to explain the costs of a Wonga short-term loan. "Some people think they will pay thousands of per cent of interest. They won't of course - that's just the way annual rates are calculated. Say you borrowed £150 for 18 days, it would cost you £33.49."
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