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Taking a bite out of the loan sharks: 91Èȱ¬ South East Investigates
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"I'll do what I have to do to get my money back... I don't accept
any excuses," were the words 91Èȱ¬ South East Today reporter David
McGee heard when he went undercover to expose the businessmen
making a mint from the credit crunch misery.
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This Monday (28 July 2008), 91Èȱ¬ South East Investigates what happens
when you have nowhere else to turn and fall into a whirlpool of
debt inhabited by loan sharks.
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From adverts in a Kent newspaper David comes into contact with
Andreas Haralambous, a Surrey businessman who claims to be the
answer to people's cash flow problems. But at what price?
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As our reporter quickly discovers, it is not just the 2,000 perÌýcent interest that Mr Haralambous's customers have to worry
about.
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As well as dubious late payment fines, Mr Haralambous's
collectors are not afraid to turn to intimidation to ensure debts
are repaid.
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David borrows £1,000, and agrees to pay £49 a week for 60Ìýweeks to
a debt collector called Julian Douglass, or known as Jules,
despite his credit agreement not complying with the Consumer
Credit Act.
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The total amount he'll pay is nearly £3,000 (£2,940), making the interest rate 917% APR.
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But when he defaults on payment, he begins to understand the true
extent of Mr Haralambous's words.
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With four weeks of arrears
David refuses to let Jules into his flat and is told: "You think things are just going to disappear into thin air. Is
that what you think? This business doesn't work like that you
know...
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"If you borrow someone's money, and you're going to pay. Either
way, one way or another, you will pay.
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"When you go to bed tonight, think about what you're dealing
with. Have a good think man, because this ain't a game."
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In tonight's programme we also meet "Sarah", who, unable to
access credit from banks turned to Mr Haralambous.
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We follow
Sarah when she tells her collector she hasn't got the money: "It was just so frightening and so threatening. His reaction,
his aggression that he showed on the phone. It was extremely
shocking."
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But are Mr Haralambous's business practices actually illegal?
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We
hear from Ian Startup of Kent Trading Standards: "He's obviously operating illegally, he's making implied threats
which could easily amount to harassment, he has more or less said
he won't accept any excuses for non payment bar the client
actually dying which obviously would be illegal, and he needs to
be stopped, effectively."
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In response to South East Today's investigation Mr Haralambous'
solicitors stated:
"Our client is not a loan shark... He is a reputable businessman.
Our client is licensed by the Office of Fair Trading for the
provision of credit and a member of the Consumer Credit
Association. The loan of monies to individuals who are such poor
credit risks that they cannot obtain advances from banks and
other large institutions is an area of activity inherently likely
to lead to complaint from those who have obtained funds and then
failed to repay as agreed in writing.
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"If our client has in any way acted in breach of any part of the
Consumer Credit Act..." ".such actions were a matter of genuine
error. Our client does not threaten or intimidate debtors and has
instructed those who work with him that there should be neither
such threats nor intimidation."
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"Our client operates in the obviously difficult area of lending
to poor credit risks on those occasions when no large lending
institution will do so. There have been no previous complaints
about our client's conduct."
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Regarding "Sarah", Mr Haralambous' solicitors stated:
"She has entered into a number of quite separate loan agreements
with our client dating back to July 2005. The preceding three
loan agreements we understand have all been paid off." "If she is
indeed contending that she has been 'harassed' and/or
'intimidated' and/or 'threatened' by debt collectors, why has she
continuously and voluntarily entered into fresh loan agreements
with our client?"
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When asked by the 91Èȱ¬ if he had anything to say, debt collector
Julian Douglass said:
"If I did, I'd say it man... you fool, come out of my face man."
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To see how 91Èȱ¬ South East Investigates takes a bite out of a loan
shark tune into 91Èȱ¬ One at 6.30pm on Monday 28 July 2008, Sky channel
983 or visit bbc.co.uk/kent.
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