Thursday 6th of August 2009
Thousands of customers have faced crippling debt obligations after taking out a loan with two unscrupulous lenders in Newcastle and Manchester.
In two separate crown court hearings in the northern cities, jurors heard how hard-up customers were asked to pay extortionate interest on cash loans, plunging them further into debt misery.
One victim, 40-year-old Debra Wilson, told Newcastle crown court how she had been coerced into repaying £88,000 in interest on a £500 loan given to her by 39-year-old County Durham-based loan shark Robert Reynolds.
Mrs Wilson remortgaged her house and paid Mr Roberts £4,000 in compensation from a motorbike accident to pay the interest. Prior to his arrest, Mrs Wilson’s gas was cut off because she had become unable to make tariff payments.
Issuing a 51-week prison sentence suspended for two years, Judge John Evans said: "You are a person without a conscience and you should be stamped with a government health warning as anybody who comes into contact with you will be at risk of damaging their health."
Meanwhile, Manchester crown court sentenced fellow loan shark John Kiely to five years in prison for running an illegal lending ring from a mansion in the Peak District.
Written by Hayley Jones
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