30 January 2020, 17:46
This caller opened up to James O’Brien in a shocking story of severe debt after he borrowed extra Christmas money from a payday lender.
James O’Brien called payday lenders “abominable” after administrators announced that people who had been mis-sold by lender Wonga would get 4.3% of the compensation owed to them.
Joe, who is a self-employed physical worker, broke his hand before Christmas and in desperation applied for a £ 1,000 loan to support his family. He said his mistake was not reading the fine print; he received an email saying he owed the lender £ 4,500.
“We had no money before Christmas, and now we still have no money, how do I get around this one?” Joe said, telling James the company was withdrawing £ 52 per week from his account.
“Every time you don’t pay they are in arrears and the arrears keep going up.”
Joe confessed that he didn’t know how much he owed the company and that he didn’t know “what to do or where to go”.
James, disgusted, said: “I thought it had stopped … here you are, the first to tell me it’s about business as usual.”
James urged the appellant to find a professional debt hotline and find out what his rights are.
“You played by the rules, you did what you thought was right and ended up barely knowing how much debt you owe,” he said.