Newcastle United's Muslim players told wearing Wonga-sponsored shirts infringes Sharia law

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Wednesday, 10 October 2012

Newcastle United's Muslim players told wearing Wonga-sponsored shirts infringes Sharia law

This is interesting. Walthamstow MP and dozy bint Stella (awesomstow) Creasy is a fervent campaigner against loan sharks, which is commendable, but her particular vitriol is aimed at the firm Wonga who are not actually the most dangerous, or unscrupulous. They do have a very amusing advertisment campaign running and their business is increasing. According to something I read on Guido Fawkes blog a short term loan, of £200 for say 10 days until payday from Wonga would cost around £23, while to go overdrawn at one's bank for the same sum during the same period could cost over £75. Wonga don't make much profit on the interest, no matter how high, for such a short term loan, so what profit they do make is through the setting up fee. They also seem to work on the old street market trader principle of SPQR. This doesn't always mean Senate Populusque Romanum, but Small Profits Quick Returns. Where these loan companies in general are very dangerous is when they suck people into taking out regular new loans to pay off the previous loans. Then the high interest rates can be deadly.

But I formed the opinion that Wonga's operation was almost sharia compliant in its reliance on the preliminary setting up fee for its profit. The Muslim Council of Britain does not agree. From the Telegraph.

Newcastle United's Muslim players have been warned that wearing the club's shirt with the logo of new sponsors Wonga on the front could infringe Sharia law.

The Muslim Council of Britain's (MCB) intervention is the latest batch of criticism the club has received since signing a four-year £24 million sponsorship deal with the short-term loan company on Tuesday that will also see the club's ground revert to its long-standing title of St James' Park.

There is nothing illegal about Wonga’s enterprise, but the firm’s charge of 4,214 per cent APR on its internet-based payday loans has been criticised by local MPs, consumer groups and trade unions.

Newcastle's starting eleven against Manchester United contained four practising Muslims, Demba Ba, Papiss Cissé, Cheick Tioté and Hatem Ben Arfa.

Under Sharia law, a Muslim is not allowed to benefit from lending or receiving money from someone, which means that earning interest is not allowed.

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Posted on 10/10/2012 5:03 AM by Esmerelda Weatherwax

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Comments

10 Oct 2012
Armchair Punter

I am sure AIG is fully sharia compliant in all of its investments. And none of those gambling-related sponsors (including, apparently, AIG, in light of its recent woes) are a problem.

10 Oct 2012

Ciccio

There was a time, before England was run for and by bankers, when an annual interest rate of even 25% would have landed the company in jail.

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