PAY DAY LOANS - A hypothetical scenario.......

[Canoeless]

OK, I wanted to run a hypothetical scenario past you good people and see what you think......

 

A hypothetical bloke, let's call him BOB who has a very poor credit rating, a house which he lives in with his wife and two children which the married couple own but which has a whacking 2nd charge in favour of his father who gave them money to pay a chunk of the mortgage off, no tangible assets and a job which pays him £3000 per month which to be honest he hates, decides that he is going to better his situation by going to all 240 payday loan companies and borrow the maximum amount each of them allow him to.

 

In all, he borrows £150,000 and sets a payment date one month in the future.

 

He then transfers the £150,000 to his other UK bank account, and through a series of offshore accounts, bounces the money into a foreign company that he is a director of.

 

Then he closes his initial current account, cancels his debit card, sends letters to all of the loan companies pleading redundancy and offers to pay them 20% of the initial debt, or accept that he will go bankrupt and they will get nothing.

 

He also makes reference to the fact that any contact other than by letter will be treated as 'Threats and Intimidation' and a trip to the doctors claiming of stress will back this up. A no win no fee solicitor will also be employed to chase off any threats or intimidation that should ensue.

 

He then sits tight and waits for the phone to ring and the letters and debt collectors to arrive at his door so he can claim harrasment against them.........

 

Other than the obvious moral and ethical problems, what are the flaws in BOB's plan?

[Jamie Kingston]

he will get found out because there will be some lenders who will take him to court - very few but some and when they do.... I wouldn't condone this behaviour. What goes around comes around 10 times harder.

[westfield]

Are there really 240 different pdls with different directors etc. When i did a search many seem to be linked or are brokers. As for the plan i think it is flawed as it is clearly fraud and i am afraid what goes around comes around. Not that i don't think pdls are vile

[Canoeless]

If BOB gave all the truthful information when asked, how could he be guilty of fraud? Surely the onus is on the lender to decide whether BOB is a good bet or not. Should BOB then decide to go bankrupt with £150,000 in an untraceable bank account, what recourse do the thieving PDL's have?.....purely hypothetically, obviously.

[westfield]

Very often one of the questions is about plans to go BR or into an IVA.

It is however clearly fraud as it is planned out and i think if a complaint were made it would be quite difficult to give a good explanation as to why you applied to 240 pdls.

I also have to add i think the chances of netting 150k are slim especially now as more and more pdls are doing credit searches on you.Applied

[westfield]

Sorry still not convinced there are 240 separate heyday loan companies