Man Commits Suicide After Racking Up Payday Loan Debts
July 28, 2014
A woman who lost her father to suicide after he amassed more than £20,000 of debt has blamed payday loan lenders for his death, pleading: “Why do they still lend money to people when you have got debt?”
Ian Jordan, a 60-year-old granddad from Botley near Southampton, overdosed on painkillers after his debts spiralled out of control and he struggled to deal with creditors chasing him for payment.
His daughter Samantha, aged 36, has now demanded tighter controls of payday loan firms.
“He was borrowing money to pay off debts… to pay off debts. It just spiralled out of control. They (payday loan firms) were just taking it out of his bank account. He had no money in the last few days of his life,” she said.
“Why do they still lend money to people when you have got debt? My main concern is to make sure that this doesn’t happen to anybody else.”
In the wake of her father’s death, there has been no let-up for Samantha and the family after it was revealed that Mr Jordan continued to receive over 1,000 text messages from creditors chasing for payment.
Mr Jordan’s ex-wife, who wished to remain anonymous, said:
“People receive calls after they are dead and Ian received 1,000 texts after his death. Some of them were demands for money. They pursued the family too. We want to highlight the fact pay day loans should never send texts to people after they died.”
She added: “Ian had stated that Samantha was his next of kin but he didn’t leave a will. The payday loan companies started pursuing her for his debts. Some of the letters they sent her were quite threatening. The way she was treated was appalling. She was quite distressed.
“Not only had she lost her father, she had also had to put up the demands that she pay back his loans. It’s not right.”
It transpired that Mr Jordan was being charged more than 5,000% in interest every year for the money he borrowed.
An inquest into his death, which occurred in November last year, came as the Financial Conduct Authority announced they intend to cap the amount that payday lenders can charge their customers.
The FCA said that ‘rates should be capped at 0.8 per cent a day’ and added that ‘no one will have to pay more than twice what they borrowed’.
If you’re worried that the council might take action against you for non-payment of council tax, entering into a Scottish trust deed can be a beneficial step. It stops legal action by all creditors included in the arrangement, and provides a ‘safe haven’ from which to regain control of your finances. As council tax arrears […]
A debt payment programme (DPP) remains on your credit file for six years, along with other default markers and court judgments that have been made against you. This can seriously affect your ability to borrow for this period of time, and longer. Even if you can secure borrowing, lenders are only likely to offer unfavourable […]
If you owe a debt of £5,000 or less, your creditor may send you a Simple Procedure Notice of Claim. This is a relatively new procedure that was brought in by the Scottish government and commenced on 28th November 2016 – their intention being to make it easier to resolve debt disputes. So if you’ve […]
A Bankruptcy Restriction Order may be made against you if it’s believed that you acted dishonestly, recklessly or unlawfully before you were made bankrupt, or during your bankruptcy. Your Trustee will inform the Accountant in Bankruptcy (AiB), and if their suspicions are upheld, a BRO of 2-15 years can be made depending on the seriousness […]
Debt payment programmes (DPPs) are an intrinsic part of the Debt Arrangement Scheme, which allows you to pay off unsecured debt at an affordable rate. If a debt payment programme is rejected by one or more creditors, the DAS Administrator can apply their discretion on whether to approve the plan, after using a test to […]
If you’re struggling to pay your unsecured debts, a debt payment programme could help you to regain control of the situation, and become financially stable again. Debt payment programmes are a fundamental part of the Debt Arrangement Scheme (DAS) in Scotland, and allow you to repay over a longer period of time. These programmes involve […]