Debt interest charges led man to suicide
What you need to know:
- Financial experts said many lenders believed that the payday loans business was equivalent to “a crock of gold at the end of the rainbow”. Some defaulters ended up losing or in danger of losing their homes. Sixty per cent said they regretted taking loans.
- Breeze’s problem was indebtedness, though the money he owed – a payday loan of £1,600 (Sh228,000) – was comparatively small when compared to debts run up by others.
- With payday borrowers increasing in recent economic hard times from 3,000 in 2006 to more than 2 million today, there has been growing pressure to clamp down on the lenders, and last week this finally happened.
Anthony Breeze, 36, father of a five-year-old daughter, spent his last £3 (Sh427) on a can of petrol, walked to a secluded pathway near his home in Bolton, poured the gasoline over his head and set himself on fire.
When passers-by tried to help him, he said, “I’ve had enough”. He died later in hospital.
Breeze’s problem was indebtedness, though the money he owed – a payday loan of £1,600 (Sh228,000) – was comparatively small when compared to debts run up by others.
Typically, a loan of £100 (Sh14,238) would be negotiated to tide a person over until the next pay day. But what the applicant often did not realise was that interest rates charged for late repayment were astronomical, sometimes up to 16,000 per cent.
Anthony Breeze’s girlfriend said the night before her partner died he had received a series of texts and telephone demands from a number of loan companies.
Financial experts said many lenders believed that the payday loans business was equivalent to “a crock of gold at the end of the rainbow”. Some defaulters ended up losing or in danger of losing their homes. Sixty per cent said they regretted taking loans.
With payday borrowers increasing in recent economic hard times from 3,000 in 2006 to more than 2 million today, there has been growing pressure to clamp down on the lenders, and last week this finally happened.
The Financial Conduct Authority ruled that payday loan rates be capped at 0.8 per cent of the amount borrowed a day. No-one would have to pay back more than twice what they borrowed and there would be a £15 (Sh2,135) cap on default charges. The restrictions come into effect in January.
“For people who struggle to repay, we believe the new rules will put an end to spiralling debts,” said the FCA chief executive, Mr Martin Wheatley. “For most of the borrowers who do pay back their loans on time the cap on fees and charges represents substantial protection.”
He said research had shown that 70,000 people who were able to get a payday loan now would not be able to do so under the new stricter rules.
Gillian Guy, of Citizens’ Advice, called on the FCA to monitor the cap to make sure it is set at the right level and is working for consumers.
* * *
Some people are true heroes. Alan McLoughlin, coach for Portsmouth Football Club, was diagnosed with kidney cancer in 2012. He had surgery in October of that year and it was successful.
Most people would then concentrate on regaining their strength in remission, but McLoughlin opted for further pain. He joined a three-year trial of an experimental drug which was seen to shrink malignant kidney tumours. The side-effects are awful.
Twenty-one months into the trial, McLoughlin’s hair has fallen out in clumps; his body is marked by skin rashes; he has chapped hands and a constant ache in his neck and he will be on blood-pressure tablets for the rest of his life.
A former Republic of Ireland international, McLoughlin was warned about the unpleasant effects of the new drug, but he said: “I could have had the operation and walked off saying thank you very much. But I owe it to the surgeon and the researchers trying to find something that might help people with kidney cancer. I just felt it was the right thing to do.”
* * *
Let’s hear it for the oldies …
1. A government officer stopped at a ranch in Texas and told the elderly farmer, “I need to inspect your property for illegally grown drugs.” The farmer said, “OK, but don’t go in that field over there.”
The government man exploded, “Mister, I can go where I want, I have government authority right here with me.” He then produced his badge. “See this badge? This badge means I can go anywhere I wish. Understand?”
The old man nodded politely, apologised and went about his chores.
A short time later, there were loud screams and the farmer spotted the government man running for his life from a massive, angry bull.
“Help me, help me,” he yelled to the rancher.
The old fellow threw down his tools, hobbled over to the fence and, at the top of his voice, shouted “Your badge … show the bull your badge!”
2. Interview with Jane Stevens, aged 93, of Crawfordsville, Indiana:
Reporter: Can you give us some health tips for reaching the age of 93?
Jane: For better digestion I drink beer. In the case of appetite loss I drink white wine. For low blood pressure I drink red wine and for high blood pressure I take whisky. When I have a cold then I drink Schnapps.
Reporter: When do you drink water?
Jane: I’ve never been that sick.
