UK Judges Rules for Detors in Predatory Lending Case

A judge wiped out the debts yesterday of a couple whose £5,750 ($10,500) loan had spiralled to £384,000 ($704,000). The judgment will have far-reaching implications for borrowers and lenders alike.

Tony and Michelle Meadows, from Southport, faced losing their home after being taken to court by London North Securities for failing to keep up with repayments on their loan, which had an APR of 34.9%.

Mr Meadows, 45, a car windscreen salesman, said he felt like ?a ton of weight has been lifted off me?. ?It has been incredibly hard, but we brought the fight to them and we won.?

The ruling by Judge Nigel Howarth at Liverpool County Court comes as new regulations reining in some of the practices of loan companies are being introduced by the Department of Trade and Industry. From Monday, it will be an offence to conceal the true cost of a loan in small print.

The Meadows took out the loan in 1989 to convert a room in their house into a bathroom for their growing family. The loan was marketed towards those with poor credit ratings.

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