According to the Daily Mail, Nasby Chuhan, a 2 1 year-old freshman at Beckett University in Leeds, England, hanged himself because he was unable to repay the high payday loan. A recent survey report shows that the loan company requires him to pay an annual interest rate as high as 1200%.
When the lawyer of Nasby's family asked the director of the student service center "whether he realized that the payday loan company targeted at students", the other party admitted "yes". But I don't know how they did it. I guess it may be through social media. "
Nearly 50,000 people in Britain are caught in this loan crisis every year.
Critics accuse this of being a "legal usury"
According to china securities journal, the so-called "payday loan" is actually a kind of short-term, high-interest, low-guarantee, fast-lending micro-loan. The model is that the borrower signs a check for the loan plus interest and gives it to the loan company, which promises not to cash the check at the bank before the repayment date, usually the day after the payday, hence the name "payday loan".
If the loan cannot be repaid on the payday, the borrower can also choose to extend the loan by 1 cycle by paying the same interest, which is called rolling. Generally speaking, the monthly interest rate of payday loans is 15%-30%, that is, the annual interest rate is 180%-360%.
The Daily Mail reported that in recent years, due to high interest rates, British payday loan companies have been accused by critics as "legal usury". For example, the annual interest rate of Wonga, a famous online microfinance platform in Britain, is as high as 58.53%. If a person borrows 100, after 30 days, he needs to repay the interest of 37, which is more than one third of the principal.
More and more people, including British parliamentarians and debt activists, criticize these short-term loans as "legal usury". According to the debt charity StepChange, nearly 50,000 people in Britain struggle with payday loans every year, and some people are forced to commit suicide because they cannot repay huge debts. Ian from Southampton Burleigh? Ian Jordan was forced to commit suicide because he owed money to at least nine payday loan companies, one of which had an interest rate as high as 5000%.
The British Financial Conduct Authority proposed to limit the fees and interest charged by payday loan companies to protect borrowers from falling into the loan crisis. For example, Britain stipulated in 20 15 that the daily interest rate of payday loans should not exceed 0.8%, and the total repayment amount should not exceed 200% of the principal.
But even so, there are still many people who are inexperienced or lack financial knowledge, and face credit and repayment problems because of the huge interest on payday loans. 2 1 year-old students committed suicide because they were unable to repay the loan.
The final loan interest rate is as high as 1200%.
It is reported that Nasby, a 2 1 year-old freshman in human geography at Beckett University in Leeds, England, hanged himself in his apartment near Hyde Park in West Yorkshire on May 28th last year because he could not repay his payday loan and high interest. Nasby's father, Kuljit Chuhan, didn't know that his son had borrowed a payday loan until he found that he had a loan on his back after his son died.
"This kind of thing seems harmless at first, but when you have more and more debts that can't be repaid, you realize that you have overspent. This is a gradual evolution process, and it is also the operation mode of payday loans. I think this is how Nasby entered. " Kangjit made the remarks at the investigation hearing held by the Magistrate's Court.
Priscilla Preston, director of the Student Service Center at the University of Leeds-Beckett, said at the investigation hearing that many students in the school were in debt crisis. When Julie-Anne Luck, the lawyer of Nasby's family, asked her, "Do you realize that the payday loan company is aimed at students?" Priscilla replied, "Yes. But I don't know how they did it. I guess it may be through social media. " However, she stressed that in order to prevent students from entering a desperate situation, they encouraged students to express their concerns about funds to the school, which is also one of the problems in communication between the school and students.
According to the survey, Nasby entered the University of Leeds Beckett from September 2065438 to September 2005, during which he completed all the courses of the school. However, his studies began to be affected after Christmas. He didn't hand in his homework, nor did he take the exam on 20 16 1 and the make-up exam in April.
The investigation found that he went to see a doctor on May 25th last year and told the doctor that he had been depressed for several years. Later that day, he talked to the school counselor and made an appointment to see the counselor on May 27th, but he didn't show up as scheduled.
Nasby's death made lawyer Julie ask the coroner Jonathan Leach to submit a report to the Financial Conduct Authority, asking them to take measures to prevent more students from committing suicide because they were caught in payday loans. "He died of this easy payday loan. These loan companies gave them loans easily, but the high interest rate made them unable to repay. " Julie said to Jonathan.
She added that Nasby didn't have any burden when he started to borrow money, but the high interest rate forced him to continue to rely on loans, and the final loan interest rate was as high as 1.200%. "I invite you to ask financial regulators what else they can do to ensure that students can't get such loans easily." Jonathan said he would consider Julie's request.
In recent years, there have been many similar suicides in Britain.
High interest rate: 100, and the loan will become 800 in three months.
According to the report, in recent years, there have been many incidents in Britain where students committed suicide because they were unable to repay their payday loans. In 20 14, Courtney Mitchell Lewis, a student aged 2 1 year, died of overdose because the loan of 100 became 800 in just three months. Before committing suicide, he wrote "I don't want to die" on social media.
According to the survey, Courtney is from Aberdeen, South Wales, and a student at Swansea University. When he decided to borrow money from the payday loan company, he only borrowed 100 (equivalent to RMB 880 yuan).
"Courtney is a caring and caring person, but he faces many personal problems. He didn't expect 100 to become 800 in just three months. " Coroner Colin Phillips said.
Last year, a disabled teenager was unable to repay his payday loan, and his bank account was emptied by the loan company, resulting in suicide after he was penniless. On the same day, the coroner issued an appeal to change the rules of payday loans.
Kane Sparham-Price, an 8-year-old boy from greater manchester, also hanged himself after the loan company transferred his funds to pay his debts according to the agreement. After the teenager committed suicide, the coroner John Pollard said that there may be more similar deaths in the future unless changes are made.