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davidcameron

Loan Sharking For A Car Stereo

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Adam Fox went to a loan shark when he wanted £100 to buy a car stereo that was on special offer. He agreed to pay back the entire sum several days later, and was charged £20 interest.

Mr Fox, 26, of Stoke-on-Trent, had successfully borrowed money from a loan shark in the past, but on this occasion failed to pay the full amount owed on the due date — so the lender doubled the interest charge.

As the debt mounted, Mr Fox found it increasingly difficult to repay the growing amounts, and missed more payments — ending up being charged £100 interest every day. “Every time I didn’t pay, it cost me more and more,†he said. “There was no way that I could pay this, and the entire loan had reached £1,000. The loan shark said that he would break my legs if I didn’t pay up. This is the kind of thing that happens to people around here.â€

Read the rest in The Times (still free). It all turns out OK in the end as the taxpayer sorted him out.

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Is Mr Fox typical of the mentality of the UK?

I believe yes, that is why the UK has been and will still continue to be, a great place for foreign investment, particularly banking.

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Is Mr Fox typical of the mentality of the UK?

I believe yes, that is why the UK has been and will still continue to be, a great place for foreign investment, particularly banking.

I hope not, borrowing £100 for a car stereo is just really stupid. So what if your old stereo is rubbish? My car stereo still ran cassette tapes up until 6 months ago when I had saved enough (I set up a special fund based on the loose change in my pocket at the end of the week) to buy a fancy new one.

Why can people not save any more? This guy obviously has the means to save as he was going to pay the loan off soon after any way, what was the point of going to the loan shark?

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Is Mr Fox typical of the mentality of the UK?

I believe yes, that is why the UK has been and will still continue to be, a great place for foreign investment, particularly banking.

As a licenced credit broker I regularly do car finance deals myself.On a typical £3k over 36 months a finance company wants £318 "Documentation Fee" plus about £540 interest for the 3 years.I just did one for this amount for £105 per month which saves the customer around £200.At this rate I am earning about 15% on my money,I only do it for old customers who I know.It's a win/win in my view.

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Perhaps we wouldn't have the debt problem we currently do if high street lenders were able to pursue debts more 'vigorously'. ;)

Q

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Mr Fox, right, turned to A4e, a debt advice agency based in Stoke. Julie Cliffe, a debt adviser at the agency, said: “Mr Fox was on benefits at the time, and we found that there was additional income to which he was entitled.â€

http://www.timesonline.co.uk/tol/money/bor...icle6742136.ece

How does he afford to Insure, tax, mot, repair and fuel a car yet needs to borrow £100 from a loan shark.

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