Woman paid £88,000 for £500 loan

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posted on Aug, 5 2009 @ 09:26 AM
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Woman paid £88,000 for £500 loan


news.bbc.co.uk

A woman paid a loan shark £88,000 over seven years to pay off an initial debt of just £500, a court heard. Debra Wilson, 40, paid the money to meet a debt taken out for a computer.

At one point Mrs Wilson and her husband Kevin were giving Reynolds more than £2,000 a month and were falling further into debt, the court heard.

In May 2005 she had a stroke followed by another in August of that year and then a brain haemorrhage.
(visit the link for the full news article)


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posted on Aug, 5 2009 @ 09:26 AM
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Came across this and could not believe it, 88 grand for 500 quid. I know that some might say that they made some bad decisions but circumstances and the lure of more cash sometimes must seem the only way.

Here is a prime example of how compassionate less people have become in these times. With the economic situation as it is it seems that it is "kill or be killed". So to speak.
What I think is even more amazing is that the guy did not even go to prison for it.

Oh and the fact that hey were paying around two grand a month at some point, thats a lot of money.

Would you ever, or have you ever, let it get that bad?


news.bbc.co.uk
(visit the link for the full news article)



posted on Aug, 5 2009 @ 09:30 AM
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If they could pay 2000 pounds a month why on earth did they have to borrow 500 pounds in the first place...?

Something smells funny here.



posted on Aug, 5 2009 @ 09:32 AM
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reply to post by LestatG
 


This company wouldnt be known as welcome finance (Cattles PLC) would it?

Just kidding.

£88k for £500. I bet there are some people who would justify this or at least try too.

The money system doesnt work, there is never any money to pay the interest as soon as the loans stop.

Its just another form of slavery in my opinion.

The BBC is probably printing this to make other people think they have it easy, in reality if you have no money £1 becomes £10, £10 become £100 and £100 becomes a thousand if that makes sense.

[edit on 5-8-2009 by XXXN3O]



posted on Aug, 5 2009 @ 09:34 AM
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I know, 2000 pounds is a hell of an amount. The story also states that it was all of her benefits and his wages.

Maybe he got the job to get himself out of debt, I would of thought if they were on the fiddle they would have been caught, however on reflection on how the system works they might not find out until 2020



posted on Aug, 5 2009 @ 09:35 AM
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Not that this makes it any better but the actual story states initially a $500 loan. It then goes on to say they borrowed 'more' from the loan shark but doesn't specify the amount.

So they didn't spend 88,000 pounds to repay 500 pounds.

Still a really weird story, though.



posted on Aug, 5 2009 @ 09:35 AM
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reply to post by XXXN3O
 


Ha, welcome finance, I have not laughed out loud that hard for a long time!!!

I dealt with those sneaky loan sharks once!

[edit on 5/8/2009 by LestatG]



posted on Aug, 5 2009 @ 09:37 AM
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reply to post by AshleyD
 



Yes a good point, just a dire situation when you have to loan money to pay it back, robing Peter to give to Paul, I think the expression goes.



posted on Aug, 5 2009 @ 10:01 AM
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reply to post by LestatG
 


Some people only have them selves to blame for not looking into the Loan business in the first place...... people should never borrow money from one of those loan sharks at the back of a newspaper..... they are funked if they do...... on another note i would n't have paid back more then a grand......... if he came after me with his heavies they would have ended up in court........



posted on Aug, 5 2009 @ 10:16 AM
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this is just an exaggerated idea of what brought us into this situation. Credit, most importantly, easy credit, along with greed. The lessons our grandparents tried to tell us about saving, and paying cash, were largely ignored until we get to see first hand what they were talking about. If people can learn from this and other things, then perhaps we will come out of this recession stronger than ever before. I just hope I remember writing this.



posted on Aug, 5 2009 @ 10:24 AM
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This isn't uncommon. Ever take a real good look at your mortgage? We borrowed roughly 100,000 and will be paying back well over 250,000. My husband made the mistake of borrowing 8000 and because of the interest had to pay around 20,000.

It sucks, I know, but interest kills.



posted on Aug, 5 2009 @ 11:18 AM
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A 51 week sentence suspended for 2 years. Wow, he really learned his lesson didn't he.

Crime obviously pays in the UK, where's the disincentive?



posted on Aug, 5 2009 @ 11:32 AM
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i really hope everyone reading this understands, that, since all money in circulation was once issued as credit and covers only principal, the compound interest is

infinite.


how does that compare to 80k? it's litterally nothing, right?. borrow one dollar, pay forever out of your nose. such is the nature of banking. yes, that's right, an ever increasing stream of interest, forever. if this guy should be jailed (yes!), the same should happen to every single high level banker.



[edit on 2009.8.5 by Long Lance]



posted on Aug, 5 2009 @ 11:42 AM
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Originally posted by Retseh
A 51 week sentence suspended for 2 years. Wow, he really learned his lesson didn't he.

Crime obviously pays in the UK, where's the disincentive?


God, you're boring.



posted on Aug, 6 2009 @ 06:13 AM
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Some good points of view, either way a nasty situation.

Peace



posted on Aug, 6 2009 @ 07:59 AM
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I wouldn't be surprised. I just found out that my credit card interest went up to 29%!!!!
Apparently there are no gov't regulations protecting the consumers from financial rape.

[edit on 6-8-2009 by KEMIK]





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