The Star Online > World
Saturday October 30, 2004
Judge Nigel Howarth, sitting at Southport County Court near
In 1989 Tony and Michelle Meadows took out a loan of £5,750 (RM39,988) to fund installing central heating and converting a bathroom.
As high-risk borrowers, they agreed an annual interest rate of 34.9% with the original lenders, Home Loan Northern.
Interest, missed payments and costs saw the loan spiral to £384,000 (RM2.67mil) 15 years later, by which time the debt had been sold on to London North Securities, a debt collection agency.
The couple faced having their home repossessed.
Childminder Michelle Meadows, 44, said afterwards: “I can't get my head around it, I'm in a dream.”
Tony Meadows, a salesman, 45, added: “It wasn't a wanton spending spree we went on back then, it was just something we had to do at the time. I would advise people thinking of taking a loan to read the small print very carefully.”
District Judge Sabi Hasan, the presiding judge at Central London County Court, said judges might make similar decisions, depending on the circumstances of the case. – dpa
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