Grandfather Kills Himself After Accumulating £ 20,000 In Debt With Dozen Payday Loans, Survey Finds | The independent

Ian Jordan, a grandfather described by his daughter Samantha as “the life and soul of the party”, couldn’t cope with the payday loan debts that got out of hand and took his own life, according to one investigation.

The 60-year-old, from Southampton, Hampshire, committed suicide last year. He owed around £ 20,000 to more than a dozen payday loan companies, one of which charged him over 5,000% interest. Today his family attacked payday loan companies for lending money to people who cannot afford to pay them back. Mr Jordan’s daughter, Samantha Carr, said: “He was borrowing money to pay off his debts [which was] to repay debts. The interest rate is one thing, the fact that you already have this debt was another. It got out of hand. “

The court heard that Mr. Jordan had been unemployed for years due to poor health and suffered from a hiatus hernia. Loan companies continued to take money from him even after he was taken off Job Seeker’s Allowance. “They were just taking it out of his bank account. He had no money in the last days of his life, ”his daughter told Southampton’s Southern Daily Echo. “Why are they still lending people money when you are in debt? My main concern is to make sure this doesn’t happen to anyone else.

Southampton Coroner Grahame Short recorded a suicide verdict during the inquest which learned Mr Jordan had died after overdosing on painkillers.

And it emerged that the loan companies bombarded Mr. Jordan’s phone with text messages after his death late last year. His ex-wife, who requested anonymity, said: “People are getting calls after their death and Ian has received 1,000 texts after his death. They have sued the family as well.”

The tragic death of the 60-year-old is an extreme example of the plight of hundreds of thousands of Britons who resort to payday loans to make ends meet. Last year 1.6 million people took out short-term loans – with a total of £ 2.5 billion borrowed in this way. But there is growing concern about the dangers of loans, which can quickly escalate well beyond the original amounts borrowed. And news of Mr Jordan’s suicide comes just days after the Financial Conduct Authority announced new rules to limit the amounts payday lenders can charge. From next January, interest and fees charged by short-term lenders must not exceed 0.8% of the amount borrowed per day. Fixed default fees will be capped at £ 15 and the total cost of a loan should never exceed double the amount borrowed.

Completely unrelated to Mr Jordan’s death, one of Britain’s best-known payday loan companies, Wonga – known for its annual interest rates close to 6,000 percent – could still do being sued for lying to his borrowers. Police are examining evidence from an FCA investigation earlier this year that found the company sent threatening legal letters from law firms that didn’t exist – which saw Wonga ordered to pay 2.6 million pounds in compensation for the 45,000 people affected.

In a statement, a City of London Police spokesperson said: ‘In their role as the national police chief for fraud, the City of London Police are currently reviewing the large amount of potential evidence gathered by the FCA during its investigation to determine whether they should now begin its own criminal investigation into the case.

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