0:00:02 > 0:00:05We all like to think we get a fair deal for our money,
0:00:05 > 0:00:07whether buying, selling or taking out a loan.
0:00:07 > 0:00:10And when times are hard it matters even more.
0:00:10 > 0:00:14But many of the deals on offer could cause you problems.
0:00:14 > 0:00:16Some could even wreck your life.
0:00:21 > 0:00:23Coming up,
0:00:23 > 0:00:27what to do when your worst deal leaves you in fear for your life?
0:00:27 > 0:00:30We meet the man who ended up owing millions to violent loan sharks.
0:00:30 > 0:00:33They make it painfully clear that they're going to hurt you,
0:00:33 > 0:00:37they're going to hurt your children, they'll hurt your family,
0:00:37 > 0:00:38if you don't continue to pay.
0:00:38 > 0:00:41The financial lifeline offered to thousands
0:00:41 > 0:00:43that turned out to be a con.
0:00:43 > 0:00:48They promised a lot and in return they never gave nothing back.
0:00:48 > 0:00:51And we investigate the shocking cost of borrowing against your car.
0:00:53 > 0:00:56He did say that he could offer me just over £7,000 on the car
0:00:56 > 0:01:00but the worry was the repayment over 18 months was £20,000.
0:01:04 > 0:01:05Loan sharks -
0:01:05 > 0:01:08you might think they only affect the poorest in society,
0:01:08 > 0:01:12preying on those with low incomes or with no-one else to turn to,
0:01:12 > 0:01:14but you'd be wrong.
0:01:14 > 0:01:16Jason Shifrin is a businessman from Essex.
0:01:16 > 0:01:21He's married to Nicole, has two children, and in the early 2000s
0:01:21 > 0:01:24ran a successful jewellery and watch company.
0:01:24 > 0:01:28I was turning over over £1 million which was dominantly on watches -
0:01:28 > 0:01:32high-end watches, high-end jewellery - and we had a fantastic life.
0:01:33 > 0:01:35But his life was nearly ended
0:01:35 > 0:01:38by the consequences of getting into debt to a loan shark.
0:01:39 > 0:01:44At the end of 2001, Jason decided he wanted to expand his business,
0:01:44 > 0:01:47and approached a friend about making an investment.
0:01:47 > 0:01:50It turned out to be the worst deal he ever made.
0:01:50 > 0:01:53He gave me £150,000 to invest into stock,
0:01:53 > 0:01:58which I had to pay him 6% a month interest on that money.
0:01:58 > 0:02:02In the real world, 6% a month is probably suicidal
0:02:02 > 0:02:06but at the time I was probably making 6% a week.
0:02:06 > 0:02:08But then everything changed.
0:02:08 > 0:02:10One day at the end of 2002,
0:02:10 > 0:02:14the friend who had lent Jason the money came to see him.
0:02:14 > 0:02:16He confessed he was in trouble
0:02:16 > 0:02:18and had to leave the country immediately.
0:02:18 > 0:02:22The following day when he left, two people came into my office and said,
0:02:22 > 0:02:27"That money that you've been paying 6% a month on, it belongs to us,
0:02:27 > 0:02:30"and we are now charging you 10% a month
0:02:30 > 0:02:34"and if you don't continue to make the payments,
0:02:34 > 0:02:36"we're going to hurt your children."
0:02:36 > 0:02:40To his horror, Jason discovered that without realising,
0:02:40 > 0:02:42he had ended up in the hands of loan sharks.
0:02:42 > 0:02:44'I was absolutely petrified.'
0:02:44 > 0:02:48They don't care how or where you get their money from.
0:02:48 > 0:02:51So they make it very painfully clear that they're going to hurt you,
0:02:51 > 0:02:54they're going to hurt your children, they'll hurt your family,
0:02:54 > 0:02:56if you don't continue to pay.
0:02:56 > 0:02:59But Jason couldn't pay.
0:02:59 > 0:03:02In the wake of 9/11, when the world economy slumped,
0:03:02 > 0:03:04his business had been badly hit
0:03:04 > 0:03:08and he simply didn't have the money the loan sharks were demanding.
0:03:08 > 0:03:11So he did what seemed at the time to be the only thing he could do -
0:03:11 > 0:03:17he borrowed more, keeping track of all the different amounts in a small notebook.
0:03:17 > 0:03:21I'd then go to another guy, a John - if we call him a John -
0:03:21 > 0:03:24and I'd say to John, "I need some money to put into my business."
0:03:24 > 0:03:27So when the month's up and I've got to pay John,
0:03:27 > 0:03:33I have to then go to John number two and borrow £170,000,
0:03:33 > 0:03:37because I've got to pay John number one his £150 plus his interest.
0:03:37 > 0:03:41So then I go to John number three and I have to borrow £220,000.
0:03:41 > 0:03:44As the borrowing soared out of control,
0:03:44 > 0:03:48Jason turned to family and friends for money, telling them
0:03:48 > 0:03:52it was for a business loan because he was ashamed to reveal the truth.
0:03:52 > 0:03:54He was convinced a deal would come along,
0:03:54 > 0:03:58his company would recover, and he'd be able to pay them back.
0:03:58 > 0:04:00Now when I sit back and look at it,
0:04:00 > 0:04:03I realise there's no way that I could have paid back that debt.
0:04:03 > 0:04:04It was impossible.
0:04:04 > 0:04:07I needed to win the lottery, and then it became to the stage
0:04:07 > 0:04:11where even if I won the lottery, that still wouldn't actually be enough.
0:04:11 > 0:04:17By the end of 2003, Jason owed an estimated £8 million,
0:04:17 > 0:04:19and was stretched to breaking point.
0:04:19 > 0:04:23And then, the house of cards that he'd built came crashing down
0:04:23 > 0:04:28when his out-of-control borrowing was finally exposed.
0:04:28 > 0:04:31I received a phone call, from a business associate of Jason's
0:04:31 > 0:04:33who phoned me and said,
0:04:33 > 0:04:37"I want to let you know that Jason's in a lot of trouble -
0:04:37 > 0:04:40"he owes a lot of money to the wrong sort of people."
0:04:40 > 0:04:42I was like, "What are you talking about?"
0:04:42 > 0:04:44I'd had no idea about this at all.
0:04:44 > 0:04:48The Shifrins had a Christmas holiday booked, and with the secret now out in the open,
0:04:48 > 0:04:52decided to use it as a chance to take stock.
0:04:52 > 0:04:57But Nicole still didn't realise just how bad the situation had become.
0:04:57 > 0:05:01When we went away at Christmas 2003, that's when I realised
0:05:01 > 0:05:05that everything was over and I was just panicking,
0:05:05 > 0:05:08I was in a cold sweat, I just didn't know what to do with myself.
0:05:08 > 0:05:12And I'm standing on this balcony, looking down at the swimming pool -
0:05:12 > 0:05:15all I was thinking about was the humiliation,
0:05:15 > 0:05:18and I just felt that the best option now was just to jump.
0:05:18 > 0:05:22Jason managed to overcome his suicidal thoughts,
0:05:22 > 0:05:25but he was still in a desperate situation.
0:05:25 > 0:05:28He owed a lot of money to some very nasty people,
0:05:28 > 0:05:31who were waiting for him back in the UK.
0:05:31 > 0:05:37It was horrendous - people had phoned up the travel agent to find out when I was coming back.
0:05:37 > 0:05:41I had to change my flight because there was going to be people waiting for me at Heathrow Airport.
0:05:41 > 0:05:43By this time my family know, all my friends know,
0:05:43 > 0:05:46it's out there that I'm in a lot of trouble.
0:05:46 > 0:05:51Later, we learn why buying time by causing a potentially lethal pile-up
0:05:51 > 0:05:56was a better option for Jason than a meeting with the loan sharks.
0:05:56 > 0:06:00I decided the best thing I can do is have a crash on the M25.
0:06:04 > 0:06:08Being in debt can cause heartache at the best of times.
0:06:08 > 0:06:09But what's even worse is
0:06:09 > 0:06:13when the company you've borrowed from makes your life a misery.
0:06:13 > 0:06:17No-one knows this better than Jeannette and Frank Sharratt from Blackpool,
0:06:17 > 0:06:22who agreed to a deal they thought would give them financial security.
0:06:22 > 0:06:26Instead, it turned out to be the worst deal they ever made,
0:06:26 > 0:06:28leaving them owing £100,000.
0:06:31 > 0:06:34Jeanette is a full-time carer to Frank
0:06:34 > 0:06:36after a stroke left him confined to the house.
0:06:36 > 0:06:40- I look after you, don't I?- Oh. - Oh, I do.
0:06:40 > 0:06:41'I'm very, very angry.'
0:06:41 > 0:06:45I'll never stop being angry till the day I die, because I keep thinking
0:06:45 > 0:06:50not only what they've done to me but what they've done to my poor husband.
0:06:50 > 0:06:56The problems started when Jeannette and Frank decided to make what can often be a very bad deal -
0:06:56 > 0:06:59taking out a loan secured against their home.
0:06:59 > 0:07:01Following an accident at work,
0:07:01 > 0:07:06Frank had to leave his job as a tram driver on Blackpool's seafront.
0:07:06 > 0:07:10Not having Frank's income hit them hard financially,
0:07:10 > 0:07:12so they decided to take out a loan for £2,000
0:07:12 > 0:07:15with a company called London North Securities.
0:07:17 > 0:07:21I swear I didn't borrow this money to do anything posh with
0:07:21 > 0:07:25or have a holiday or a trip, or buy myself a new coat.
0:07:25 > 0:07:29It was basically just for the children, so they could always
0:07:29 > 0:07:32have a good school uniform and they could have school dinners.
0:07:32 > 0:07:35On top of the £2,000 loan,
0:07:35 > 0:07:42London North Securities charged a £450 set-up fee and 40% interest.
0:07:42 > 0:07:44It was a hefty price to pay
0:07:44 > 0:07:47and the Sharratts soon started missing payments.
0:07:47 > 0:07:48And when they did,
0:07:48 > 0:07:52London North Securities added on heavy default charges.
0:07:52 > 0:07:54It didn't take long for them to bump things up
0:07:54 > 0:07:56because they kept adding things on.
0:07:56 > 0:07:59They kept adding more and more and more and more and more on,
0:07:59 > 0:08:01inventing things.
0:08:02 > 0:08:05Unable to meet all the payment demands, the Sharratts started
0:08:05 > 0:08:09receiving threatening phone calls and letters from the company.
0:08:09 > 0:08:11I got 18 phone calls in one day, once,
0:08:11 > 0:08:14and they used to just laugh down the phone.
0:08:14 > 0:08:17I thought, "It's no good me crying and screaming."
0:08:17 > 0:08:20I used to go, "Ha-ha-ha, carry on doing it,
0:08:20 > 0:08:23"I'm here all day, how long have you got?" You know, trying to be brave.
0:08:23 > 0:08:26Desperate to get the company off their backs,
0:08:26 > 0:08:30Jeanette and Frank decided to sell their possessions.
0:08:30 > 0:08:33I'd sold everything I could possibly sell. I mean, I started off with
0:08:33 > 0:08:36this gorgeous, big diamond ring -
0:08:36 > 0:08:39that went, just to pay them extra money.
0:08:39 > 0:08:43Me beautiful wedding band went, it was 22 carat gold, it was the best.
0:08:43 > 0:08:47I had velvet curtains, beautiful velvet curtains, I had beautiful furniture.
0:08:47 > 0:08:51Everything had to go - if it wasn't nailed down, it went.
0:08:51 > 0:08:55The money they raised kept the company at bay - briefly.
0:08:55 > 0:08:58But the monstrous interest rates as part of the deal
0:08:58 > 0:09:01meant they were soon failing to make their payments again.
0:09:01 > 0:09:04In response, London North Securities decided to take the couple
0:09:04 > 0:09:09to court to repossess their home, as the loan had been secured on it.
0:09:09 > 0:09:12They told me to my face in court, "We want that house.
0:09:12 > 0:09:15"There's a charge on it and we're going to get that house,
0:09:15 > 0:09:22"and we want £100,000 off this woman and we want £1,400 a month interest."
0:09:22 > 0:09:26And all that has stemmed from a £2,000 loan
0:09:26 > 0:09:28which they've had ten times over.
0:09:28 > 0:09:32By now, the Sharratts had already paid over £10,000 in repayments
0:09:32 > 0:09:37on the original £2,000 loan, and had nothing left.
0:09:37 > 0:09:40But with legal fees, interest and default charges,
0:09:40 > 0:09:45the company wanted £100,000 - or the family home.
0:09:45 > 0:09:48Everything depended on the judge's decision.
0:09:48 > 0:09:51To their great relief, he wasted no time
0:09:51 > 0:09:54in throwing the case out of court and writing off the rest of the debt.
0:09:54 > 0:10:00All of a sudden he said, "Mrs Sharratt." So I said, "Yes."
0:10:01 > 0:10:04"You can go home now," he said.
0:10:04 > 0:10:06"Don't worry any more, go home now, you're safe."
0:10:06 > 0:10:08He said, "They can't touch your house."
0:10:08 > 0:10:13Honestly, I felt like dancing on air after I'd won.
0:10:13 > 0:10:16But the triumph was short-lived.
0:10:16 > 0:10:19As the couple left the building, to begin their debt-free life,
0:10:19 > 0:10:21Frank had a stroke on the courthouse steps
0:10:21 > 0:10:25which has left him bed-bound and unable to speak.
0:10:25 > 0:10:27Just fell down like that, you see.
0:10:27 > 0:10:31Just must have waited to see me winning and that was it.
0:10:31 > 0:10:33So you see, they've done it to him.
0:10:33 > 0:10:36The Sharratts were not the only people to have had their lives
0:10:36 > 0:10:39ruined by London North Securities.
0:10:39 > 0:10:41After receiving dozens of complaints,
0:10:41 > 0:10:44the Office Of Fair Trading took them to court
0:10:44 > 0:10:48and in 2010 they were found guilty of illegal debt collection.
0:10:48 > 0:10:49'By securing a conviction,'
0:10:49 > 0:10:52this led to the situation in which
0:10:52 > 0:10:54the company was required to pay compensation
0:10:54 > 0:10:58to the people who had been, frankly, ripped off by that company.
0:10:58 > 0:11:02London North Securities were ordered to pay £400,000
0:11:02 > 0:11:04to over 50 customers.
0:11:04 > 0:11:0870 charges that they held on people's houses were also removed.
0:11:08 > 0:11:12The judge who heard the case was highly critical of the company
0:11:12 > 0:11:15and the individuals concerned with it.
0:11:15 > 0:11:20He spoke of the distress that was caused to the consumers
0:11:20 > 0:11:23and he described the company's behaviour as utterly heartless.
0:11:23 > 0:11:27But London North Securities isn't the only company out there
0:11:27 > 0:11:31preying on desperate borrowers like Jeanette and Frank.
0:11:31 > 0:11:34Last year, the OFT shut down nearly 40 companies for unfair practices
0:11:34 > 0:11:38and the number has been steadily growing year on year.
0:11:43 > 0:11:47If you have a poor credit rating and can't borrow from the bank,
0:11:47 > 0:11:49then getting a loan can be tough.
0:11:49 > 0:11:53One solution that's becoming more popular is the logbook loan.
0:11:53 > 0:11:56But it's a deal that many say is the worst they ever made,
0:11:56 > 0:11:59leaving some customers fending off bailiffs
0:11:59 > 0:12:03or even having to pay out for other people's debts.
0:12:03 > 0:12:04It was heartbreaking.
0:12:04 > 0:12:10how can this company do that to somebody who is so vulnerable?
0:12:10 > 0:12:14A logbook loan is a loan secured against your car.
0:12:14 > 0:12:17There are few credit checks because the amount you can borrow
0:12:17 > 0:12:19depends mainly on the vehicle's value.
0:12:19 > 0:12:21It's quick and simple,
0:12:21 > 0:12:24and you can drive away with the cash in just a couple of hours.
0:12:24 > 0:12:26But there are risks.
0:12:26 > 0:12:28The main problems concerned with logbook loans
0:12:28 > 0:12:31are first of all, the sheer affordability factor.
0:12:31 > 0:12:33We're talking about huge rates of interest,
0:12:33 > 0:12:38sometimes 500, 1,000% APR is not untypical.
0:12:38 > 0:12:43Borrow £1,000 and you could end up repaying well over £3,000
0:12:43 > 0:12:45over the life of the loan.
0:12:45 > 0:12:49And there's an even bigger catch. When you take out the loan,
0:12:49 > 0:12:52you have to sign a credit agreement known as a bill of sale,
0:12:52 > 0:12:55and hand over the vehicle registration certificate,
0:12:55 > 0:12:58the logbook, so the company now own your car.
0:12:59 > 0:13:02The minute you sign your name on that agreement,
0:13:02 > 0:13:04you're effectively handing the keys to that lender.
0:13:04 > 0:13:07The minute you default, the car becomes theirs.
0:13:07 > 0:13:12That's what happened to Sarah Dudley, after she took out a loan
0:13:12 > 0:13:15with a company called Nine Regions, also known as Logbook Loans.
0:13:18 > 0:13:20Sarah has a degenerative spinal disease
0:13:20 > 0:13:24and relies heavily on her car to get to the shops and the hospital.
0:13:24 > 0:13:27When the car needed an MOT and service to keep it on the road,
0:13:27 > 0:13:32Sarah found she didn't have enough money to pay for it.
0:13:32 > 0:13:37Obviously, I'm disabled, I can't work
0:13:37 > 0:13:41and I had no other option but to get a logbook loan.
0:13:41 > 0:13:45Sarah borrowed £1,000.
0:13:45 > 0:13:51She was due to pay back £167 a month over 18 months - a total of £3,000.
0:13:51 > 0:13:54At first, everything was fine
0:13:54 > 0:13:57but when her health took a turn for the worse
0:13:57 > 0:14:01and she was admitted to hospital, she missed a couple of repayments.
0:14:01 > 0:14:03When I was moved back onto a normal ward,
0:14:03 > 0:14:08I did phone Nine Regions and I explained to them my situation -
0:14:08 > 0:14:14I'm in hospital at the moment, I'm very, very poorly,
0:14:14 > 0:14:17and as soon as I get out of hospital,
0:14:17 > 0:14:20I will be able to sort out and make a payment.
0:14:20 > 0:14:26The company told Sarah not to worry, they could work out a payment plan.
0:14:26 > 0:14:29But a few days later, when she'd just been discharged from hospital,
0:14:29 > 0:14:32she received some unexpected visitors.
0:14:32 > 0:14:36'I wasn't very well that weekend. I was in a lot of pain.'
0:14:36 > 0:14:40I'd actually got off to sleep for about two hours,
0:14:40 > 0:14:44and then my carer shouted out,
0:14:44 > 0:14:46"Somebody's trying to steal your car."
0:14:47 > 0:14:52I went out and there was two gentlemen stood there,
0:14:52 > 0:14:58dressed in black, they were trying to clamp my car, in a disabled bay.
0:14:58 > 0:15:02It's 5am in the morning, it's still dark. It's Sunday.
0:15:02 > 0:15:06It was absolutely terrifying.
0:15:06 > 0:15:08The men told Sarah they were from Logbook Loans
0:15:08 > 0:15:11and they were there to repossess her car.
0:15:11 > 0:15:16They drove my car out and away. I was just lost for words.
0:15:16 > 0:15:21I felt like...my world had ended,
0:15:21 > 0:15:26because without my vehicle, what am I to do?
0:15:26 > 0:15:29The problem Sarah was facing was that the company was
0:15:29 > 0:15:32legally entitled to take her car without warning,
0:15:32 > 0:15:34and there was nothing she could do about it.
0:15:34 > 0:15:37That's because logbook loans
0:15:37 > 0:15:40are not covered by the same laws as other forms of credit.
0:15:40 > 0:15:42Logbook loans are regulated by
0:15:42 > 0:15:48something called the Bills Of Sales Act, that goes back as far as 1878.
0:15:48 > 0:15:53So 140 years ago, ship captains who wanted to borrow money,
0:15:53 > 0:15:56and they would use their vessels as security for that money.
0:15:56 > 0:16:00But these people who were taking out these loans
0:16:00 > 0:16:02would go to a series of different lenders,
0:16:02 > 0:16:04so this act was brought into account
0:16:04 > 0:16:08to protect the lenders from any fraud that was taking place.
0:16:08 > 0:16:11But because the legislation was designed to benefit lenders
0:16:11 > 0:16:15and not consumers, it doesn't contain any of the protections
0:16:15 > 0:16:17provided by modern consumer law.
0:16:17 > 0:16:20Lenders can always take their vehicle back at any point
0:16:20 > 0:16:23if the consumer is in breach of their obligations -
0:16:23 > 0:16:26ie, they don't pay - and that's one of the real worries for us.
0:16:26 > 0:16:29In consumer credit legislation, hire purchase legislation,
0:16:29 > 0:16:32there are safeguards built in to protect the consumer.
0:16:32 > 0:16:36That's the sort of protection we'd like to see in bills of sales legislation -
0:16:36 > 0:16:38it's not there now and it needs to be.
0:16:38 > 0:16:41Sarah ended up having to fight the case in court
0:16:41 > 0:16:44but she did eventually get her car back.
0:16:44 > 0:16:48And last year, Logbook Loans and its parent company, Nine Regions,
0:16:48 > 0:16:51had its Consumer Credit Licence revoked by the OFT
0:16:51 > 0:16:54for deliberately deceiving customers.
0:16:54 > 0:16:57The company has appealed and is still allowed to trade
0:16:57 > 0:17:00while a final decision is reached.
0:17:00 > 0:17:03I would say that after the experience that I've had,
0:17:03 > 0:17:07don't ever get a logbook loan, don't ever, ever get one.
0:17:07 > 0:17:10Because you will be left heartbroken.
0:17:10 > 0:17:12You will be left with nightmares.
0:17:12 > 0:17:17Coming up, the threats of violence to loan shark victim Jason Shifrin
0:17:17 > 0:17:20become terrifyingly real.
0:17:20 > 0:17:22They had a pickaxe
0:17:22 > 0:17:26and they smashed about four of the windows in on my wife's car.
0:17:33 > 0:17:36Owing money can be extremely stressful, and most people
0:17:36 > 0:17:40will do whatever it takes to clear their debts as quickly as possible.
0:17:40 > 0:17:44But there are criminals out to take advantage of that determination,
0:17:44 > 0:17:48offering you a deal to erase your debts entirely,
0:17:48 > 0:17:52charging you an upfront fee for the service, and then doing nothing.
0:17:52 > 0:17:55It's a scam known as advance fee fraud
0:17:55 > 0:17:58and for many, it's the worst deal they ever made.
0:17:58 > 0:18:02The Government introduced a new scheme that enables you to eliminate
0:18:02 > 0:18:04100% of your debt within 12 months.
0:18:04 > 0:18:07To see if you qualify, press 2 on your phone now.
0:18:07 > 0:18:10'It completely gutted me, to be quite honest.'
0:18:10 > 0:18:15I was just...in a complete state of shock.
0:18:15 > 0:18:19They promised a lot and in return they never gave nothing back.
0:18:19 > 0:18:24Barrie Cresswell was a successful businessman from Surrey.
0:18:24 > 0:18:28He had two construction companies, lived a comfortable lifestyle,
0:18:28 > 0:18:31and even owned his own boat.
0:18:31 > 0:18:35But in 2008, his main company fell into difficulties.
0:18:35 > 0:18:40In the good days, obviously, there's plenty of work about and people have extensions built.
0:18:40 > 0:18:45Of course, as the recession bites our work falls by the wayside.
0:18:45 > 0:18:49With the bills mounting and the situation looking precarious,
0:18:49 > 0:18:52Barrie took the risky decision to start paying for company expenses
0:18:52 > 0:18:56on his personal credit cards.
0:18:56 > 0:18:59Things got so bad at the end of 2008,
0:18:59 > 0:19:03we couldn't find the cash to pay some of the wages
0:19:03 > 0:19:07and I had to go around the banks with various credit cards,
0:19:07 > 0:19:14drawing money out of the cash points to get enough to clear the wages.
0:19:14 > 0:19:20Barrie ended up taking on about £15,000-worth of company debt.
0:19:20 > 0:19:25But it wasn't enough, and in 2009 his main company went bust.
0:19:25 > 0:19:27It was at that point
0:19:27 > 0:19:32that I couldn't continue paying and everything went pear shaped.
0:19:34 > 0:19:37Barrie and his wife found themselves drowning in debt,
0:19:37 > 0:19:41which had by now risen to over £90,000,
0:19:41 > 0:19:43and they had no way to pay it off.
0:19:43 > 0:19:46But then, out of the blue,
0:19:46 > 0:19:49Barrie was thrown what seemed to be a lifeline.
0:19:49 > 0:19:54I received a call from a company offering to challenge
0:19:54 > 0:20:00any credit card debts or personal loan agreements that I'd got,
0:20:00 > 0:20:03and saying that they were working on a government initiative.
0:20:03 > 0:20:06The company said that thanks to a legal loophole,
0:20:06 > 0:20:09Barrie's credit card agreements were invalid
0:20:09 > 0:20:11and all his debts could be written off.
0:20:11 > 0:20:14I wasn't convinced that it was true, exactly,
0:20:14 > 0:20:18but stranger things happen and as I say, I was desperate.
0:20:18 > 0:20:24Barrie decided to go ahead and paid the company £1,700
0:20:24 > 0:20:28to put the process of erasing his debts into action.
0:20:28 > 0:20:31I was hopeful that it was going to work
0:20:31 > 0:20:36because it was really the only light I had at the end of the tunnel.
0:20:37 > 0:20:41The same company also said they could help Kal Chandla,
0:20:41 > 0:20:43from Stoke-on-Trent.
0:20:43 > 0:20:46He runs a family grocery store and like Barrie,
0:20:46 > 0:20:50had got into financial difficulties over several years.
0:20:50 > 0:20:54Three years ago a new shop opened, so that affected us big style,
0:20:54 > 0:20:57'because a lot of our customers used to come from
0:20:57 > 0:20:59'where the new shop's situated.
0:20:59 > 0:21:01'And so we were down quite a few hundred pounds a day,'
0:21:01 > 0:21:06and obviously the recession came along, that made things a lot harder.
0:21:06 > 0:21:10With Kal only just managing to make the minimum payments on his debts,
0:21:10 > 0:21:14they soon mounted up to £30,000.
0:21:14 > 0:21:16On numerous occasions,
0:21:16 > 0:21:19I started missing out on paying the minimum payment.
0:21:19 > 0:21:24'With no payments you get penalised for late payment charges and default charges,'
0:21:24 > 0:21:28so basically your debt's increasing rather than decreasing.
0:21:28 > 0:21:32Desperate to get his family back on track, Kal searched online
0:21:32 > 0:21:36and came across a company that seemed to be the answer to his prayers.
0:21:36 > 0:21:41Like Barrie, Kal was told that a legal loophole meant his credit card debts
0:21:41 > 0:21:45could be written off, thanks to a flaw in the terms and conditions.
0:21:45 > 0:21:49I thought at the time, I've got a good chance of getting out of debt.
0:21:49 > 0:21:53I thought, "If there's more money I have to give out,
0:21:53 > 0:21:58which wasn't a problem, hopefully long term, I'd be out of the debt."
0:21:58 > 0:22:02Kal agreed to pay the company £1,100, filled in the paperwork,
0:22:02 > 0:22:04and sat back to wait for the results.
0:22:06 > 0:22:09Barrie and Kal both heard back from the company and were told
0:22:09 > 0:22:13they would be sent a series of letters to forward on to their creditors.
0:22:13 > 0:22:16When they received replies from those creditors,
0:22:16 > 0:22:19they were instructed to send them back to the company.
0:22:19 > 0:22:22I sent out the letters that they sent to me,
0:22:22 > 0:22:27sent the responses back to them, waited, heard nothing, so I chased them.
0:22:27 > 0:22:32They sent out the other letters, I sent the responses back to them,
0:22:32 > 0:22:37heard nothing, and this went on for in excess of six months.
0:22:37 > 0:22:42After between three and six months I started getting a bit concerned,
0:22:42 > 0:22:46knowing that nothing's been done, the debt's still there.
0:22:46 > 0:22:49With the case dragging on for months and months with no results,
0:22:49 > 0:22:52Barrie started to get suspicious.
0:22:52 > 0:22:58At one point I got so frustrated, I sent them a really stroppy e-mail
0:22:58 > 0:23:02saying, "You told me you would sort this out.
0:23:02 > 0:23:06"Either you are a genuine company and you're going to help me
0:23:06 > 0:23:08"or you're a bunch of shysters."
0:23:08 > 0:23:11And the next thing I knew was
0:23:11 > 0:23:16I was contacted by the Trading Standards people.
0:23:18 > 0:23:19We became aware of the scam
0:23:19 > 0:23:23around 2009, when we started to receive a number of complaints,
0:23:23 > 0:23:26and that was when we decided to investigate.
0:23:26 > 0:23:29We found a variety of people getting sucked in by this scam.
0:23:29 > 0:23:32Because they've been in debt, possibly for a long time,
0:23:32 > 0:23:34they don't see any way out of this debt
0:23:34 > 0:23:38and when a company offers something that seems too good to be true,
0:23:38 > 0:23:42unfortunately some of these people do still go along with that.
0:23:42 > 0:23:45I felt I was being conned. It was a devastating blow,
0:23:45 > 0:23:50and I, myself...everything just went boom, downhill.
0:23:50 > 0:23:53It's a fairly standard advance fee fraud,
0:23:53 > 0:23:57where you're asked to pay some money up front to receive a service
0:23:57 > 0:23:59and then that service never happens.
0:23:59 > 0:24:02In fact, the scam is so common
0:24:02 > 0:24:05that it wasn't long before Kal Chandla was called again.
0:24:05 > 0:24:09I actually had another company ring me called Buy Bye Credit,
0:24:09 > 0:24:14they actually came to my house, and I thought,
0:24:14 > 0:24:18"If they're actually coming to see me face-to-face maybe they are genuine."
0:24:18 > 0:24:22After talking things through, Kal was convinced
0:24:22 > 0:24:27and agreed to pay Buy Bye Credit £900 to eliminate his debt.
0:24:27 > 0:24:29But as with the first company,
0:24:29 > 0:24:33once he'd paid his money, all contact ceased.
0:24:33 > 0:24:36I was a lot more concerned now than I was before.
0:24:36 > 0:24:41I was getting depressed, thinking I've been done again, second time around.
0:24:41 > 0:24:44Buy Bye Credit's website no longer exists
0:24:44 > 0:24:48and they haven't filed any company accounts for over two-and-a-half years.
0:24:48 > 0:24:52Kal is unlikely to be getting his money back.
0:24:52 > 0:24:56There are no actual legal loopholes for people to completely wipe off their debts.
0:24:56 > 0:24:58People have to go down the proper route,
0:24:58 > 0:25:02by filing for bankruptcy, there are things like debt relief orders,
0:25:02 > 0:25:04but these have to be applied for through a court.
0:25:04 > 0:25:07However, they can get free advice before doing anything
0:25:07 > 0:25:10from Citizens Advice Bureaus or the National Debtline.
0:25:10 > 0:25:12Barry has done just that.
0:25:12 > 0:25:15He's now signed up with National Debtline, who are helping him
0:25:15 > 0:25:19to make repayment agreements with his creditors.
0:25:19 > 0:25:23At present rate of repayments, it's going to take me 77 years
0:25:23 > 0:25:27to pay off credit cards and personal loans.
0:25:27 > 0:25:30The company that Barrie and Kal dealt with originally
0:25:30 > 0:25:34can't be named while Suffolk Trading Standards are investigating them.
0:25:34 > 0:25:38We know that at least 4,000 people have been taken in by this scam,
0:25:38 > 0:25:42it may be more, and these people were paying
0:25:42 > 0:25:45anything from £100 up to £1,000 to have their debts wiped out.
0:25:45 > 0:25:48So it's easy to see the scale of this operation
0:25:48 > 0:25:51and just how much money these people were potentially making.
0:25:51 > 0:25:55I obviously should have learnt from my first experience,
0:25:55 > 0:26:01with me being the person I am, quite gullible and naive.
0:26:01 > 0:26:03This time it really knocked me out.
0:26:03 > 0:26:05I've never known an experience like that,
0:26:05 > 0:26:10whereby I've been hit not just once but twice.
0:26:10 > 0:26:12If somebody rang me up and said they'd had a call
0:26:12 > 0:26:14from a company like that, I'd say, "Ignore it."
0:26:14 > 0:26:18If it could be done, it would be on the national news.
0:26:18 > 0:26:22It must be a con, it must be a con.
0:26:28 > 0:26:31Logbook loans are big business in the UK.
0:26:31 > 0:26:36In 2010 the market was estimated to be worth almost £40 million.
0:26:36 > 0:26:39But as their popularity increases,
0:26:39 > 0:26:43so does the number of people getting into trouble, like Sarah Dudley,
0:26:43 > 0:26:47whose car was repossessed after she fell into arrears.
0:26:47 > 0:26:48It was heartbreaking.
0:26:48 > 0:26:54How can this company do that to somebody who is so vulnerable?
0:26:54 > 0:26:58Registered debt counsellor Mike Thomas, a former policeman,
0:26:58 > 0:27:02now runs a website giving free advice to people with money worries.
0:27:02 > 0:27:06He fights for the consumer rights of people who've taken up deals
0:27:06 > 0:27:07they now regret.
0:27:07 > 0:27:11He's hearing more and more horror stories about logbook loans
0:27:11 > 0:27:14and wants to find out exactly what's going on.
0:27:14 > 0:27:17I'm actually quite concerned about these loans.
0:27:17 > 0:27:20Are consumers being made aware of what happens
0:27:20 > 0:27:22when you go into arrears, for example?
0:27:22 > 0:27:24Are they aware of the default charges?
0:27:24 > 0:27:28They can add nearly £100 a month in phone calls and letter charges.
0:27:28 > 0:27:31Are they aware the vehicle can be repossessed without a court order?
0:27:31 > 0:27:35And as the company own your car for the duration of the loan,
0:27:35 > 0:27:40should you fall behind with payments you could lose your vehicle.
0:27:40 > 0:27:45Mike wants to find out why logbook loans are causing so many problems.
0:27:45 > 0:27:47Are customers being given the right information?
0:27:47 > 0:27:49How easy is it to get approved?
0:27:49 > 0:27:53And just how expensive is it to borrow against your car?
0:27:53 > 0:27:57What I'm going to do now is contact three logbook loan companies
0:27:57 > 0:28:01and try to replicate the experience that consumer goes through.
0:28:01 > 0:28:03Don't know much about it,
0:28:03 > 0:28:06put logbook loan in the internet and see what comes up.
0:28:06 > 0:28:09The idea is I'll take my car along and go and see three of them
0:28:09 > 0:28:11and see if they do a good job or not.
0:28:12 > 0:28:17Morning, I'm just interested in taking a loan out against my car.
0:28:17 > 0:28:20I just wondered what the procedure is, what I need to do with you guys.
0:28:20 > 0:28:23Mike gives some details over the phone
0:28:23 > 0:28:26and makes appointments with three national logbook lenders.
0:28:26 > 0:28:30They each arrange to meet him in the local town centre
0:28:30 > 0:28:34where an agent will check over the car and look at his documents.
0:28:34 > 0:28:37Once approved, if Mike actually wanted to take out a loan,
0:28:37 > 0:28:40he'd be able to drive away with the money.
0:28:40 > 0:28:42Thanks, bye.
0:28:44 > 0:28:48The first company he's going to see is Logbook Loans,
0:28:48 > 0:28:50who Sarah Dudley dealt with.
0:28:50 > 0:28:54On the phone they told Mike that to borrow £20,00 over 18 months
0:28:54 > 0:28:59his total repayments would be over £5,500.
0:28:59 > 0:29:02But at the meeting they tell him that if he wants,
0:29:02 > 0:29:03he can borrow even more.
0:29:03 > 0:29:04I've been to see the guy.
0:29:04 > 0:29:08He did say that he could offer me just over £7,000 on the car
0:29:08 > 0:29:13but the worry was the repayments over 18 months was 20,000.
0:29:13 > 0:29:16I had to push him to get quite a bit of information out of him,
0:29:16 > 0:29:19particularly about the repossession.
0:29:19 > 0:29:22He didn't tell me that they could actually come and take my car
0:29:22 > 0:29:24without a court order.
0:29:24 > 0:29:26So he wasn't clear on that, I actually had to push him.
0:29:26 > 0:29:31The second company Mike's going to see is V5 Loans.
0:29:31 > 0:29:33The thing that comes to mind is
0:29:33 > 0:29:36how simple it is to get a loan against your car.
0:29:36 > 0:29:39But there's no credit check on you. It's just too easy.
0:29:39 > 0:29:43At the meeting, V5 Loans tell Mike that to borrow
0:29:43 > 0:29:50£2,000 for 18 months, his total repayments would be over £5,800.
0:29:50 > 0:29:53That's the second meeting done. I do have some concerns.
0:29:53 > 0:29:57One is that the paperwork that I was given,
0:29:57 > 0:30:01there's ten pages and it's pretty small print.
0:30:01 > 0:30:04I felt intimidated and under pressure that if I was to do the deal there and then,
0:30:04 > 0:30:06I've got to go through all these pages and sign.
0:30:06 > 0:30:08Not many people will read it word for word
0:30:08 > 0:30:11when there's someone over the table looking at you.
0:30:11 > 0:30:13But it's too easy. It's easy to get money
0:30:13 > 0:30:16and I think the logbook loan companies aren't checking
0:30:16 > 0:30:18whether consumers can actually afford to pay the loans.
0:30:18 > 0:30:22No wonder people get into trouble weeks later and they can't afford it,
0:30:22 > 0:30:24because they couldn't afford it in the first place.
0:30:24 > 0:30:28The third company Mike's going to visit is Mobile Money.
0:30:28 > 0:30:31They've told him that if he borrows £2,000 for 18 months,
0:30:31 > 0:30:36his total repayments will be £5,990.
0:30:36 > 0:30:38When I first got in there - it's not private,
0:30:38 > 0:30:42there was another client just round the corner, completely open,
0:30:42 > 0:30:46and he took on a 24-month programme at £258 a month.
0:30:46 > 0:30:50I heard everything. When I finally got in to sit in front of this chap,
0:30:50 > 0:30:54he didn't tell me about the additional charges, that when you are in arrears, the £12 a letter.
0:30:54 > 0:30:58He doesn't want a great deal of evidence about my income.
0:30:58 > 0:31:03I could have easily walked out of there within 15-20 minutes with cash,
0:31:03 > 0:31:07because I heard him counting out the cash for the guy before.
0:31:07 > 0:31:10Again, it just proves it's so easy to get a logbook loan.
0:31:10 > 0:31:13Clearly, we can see that the odds are stacked in their favour.
0:31:13 > 0:31:15If you default, they've got the car.
0:31:15 > 0:31:17If you don't default, they've got the interest.
0:31:17 > 0:31:20It's a good product for them, it's bad news for consumers
0:31:20 > 0:31:23and that's why we urge consumers to find another way.
0:31:23 > 0:31:27Dealing with logbook loans as a solution to getting out of debt
0:31:27 > 0:31:29is not a sustainable strategy.
0:31:29 > 0:31:32We asked all three companies to comment.
0:31:32 > 0:31:34Only Mobile Money responded. They said...
0:31:59 > 0:32:01From what Mike's seen, there's no doubt that
0:32:01 > 0:32:06logbook loans are both extremely expensive and easy to get.
0:32:06 > 0:32:09Of the three logbook loans companies we visited,
0:32:09 > 0:32:12all wanted to charge Mike over 400% APR.
0:32:14 > 0:32:16But it's not just the high cost that's a problem.
0:32:16 > 0:32:20Some people are finding they're getting into trouble with logbook loans
0:32:20 > 0:32:21without even taking one out.
0:32:21 > 0:32:23I couldn't believe this was happening.
0:32:23 > 0:32:26In the back of my mind I kept thinking, "This is wrong,
0:32:26 > 0:32:29"and I'll get my bike back, everything will be all right."
0:32:33 > 0:32:36The logbook loan business is booming.
0:32:36 > 0:32:41Between 2006 and 2009, the numbers of people taking one out
0:32:41 > 0:32:46increased by nearly 40%, to 38,000.
0:32:46 > 0:32:51That's 38,000 vehicles on the road with a loan secured against them.
0:32:51 > 0:32:56A logbook loan means they're owned by the loan company, not the driver.
0:32:56 > 0:32:58So, if you bought your vehicle second hand,
0:32:58 > 0:33:00you could be in for a nasty shock,
0:33:00 > 0:33:04as happened to Oliver Martin from north London.
0:33:04 > 0:33:08For him, buying a second-hand motorbike from a private seller
0:33:08 > 0:33:12for £6,000 turned out to be his worst deal.
0:33:12 > 0:33:16It's an amazing bike, it's fantastic,
0:33:16 > 0:33:18it's one of the top bikes, I would say.
0:33:18 > 0:33:24But early one morning, Olly got a wake-up call from the bailiffs.
0:33:24 > 0:33:25I was asleep.
0:33:25 > 0:33:30Around 6:30 in the morning the doorbell was ringing continuously.
0:33:30 > 0:33:34I woke up, I thought it must be some emergency or something.
0:33:36 > 0:33:41Went to the door half asleep, and there were two guys out there
0:33:41 > 0:33:45saying they were bailiffs and they had come to repossess my bike.
0:33:45 > 0:33:48I asked them what they were talking about
0:33:48 > 0:33:53because I bought my bike for cash, so there was no finance on the bike.
0:33:53 > 0:33:58But a previous owner had taken out a logbook loan for £4,000
0:33:58 > 0:34:01and then not paid it back.
0:34:01 > 0:34:03He sold the bike on,
0:34:03 > 0:34:07and it changed hands several times before Olly then bought it.
0:34:07 > 0:34:10He had no idea that there was a loan taken out against it,
0:34:10 > 0:34:13but the bailiffs wheeled the bike away.
0:34:13 > 0:34:15I couldn't believe this was happening
0:34:15 > 0:34:18but in the back of my mind I kept thinking, "This is wrong,
0:34:18 > 0:34:21"and I'll get my bike back, everything will be all right."
0:34:21 > 0:34:25The original owner had carried out a clever con,
0:34:25 > 0:34:28taking out a logbook loan, then selling the bike on quickly,
0:34:28 > 0:34:33knowing the loan company would go after the vehicle and not the borrower.
0:34:33 > 0:34:37Now Olly was left without the bike he'd paid £6,000 for.
0:34:37 > 0:34:40He was shocked, because he'd done a finance check before buying it
0:34:40 > 0:34:43and the results had been clear.
0:34:43 > 0:34:46I called the police and I said exactly what happened -
0:34:46 > 0:34:50bailiffs came to take the bike, and I wasn't going to let them take it.
0:34:50 > 0:34:53The police advised me that if I didn't let them take the bike,
0:34:53 > 0:34:57they'd come and arrest me for breach of the peace.
0:34:57 > 0:34:59The company was allowed to repossess the bike
0:34:59 > 0:35:03because under the terms of the original loan agreement
0:35:03 > 0:35:06with the previous owner, it belonged to them.
0:35:06 > 0:35:09And although the industry has a new code of conduct
0:35:09 > 0:35:13which suggests lenders register agreements on a central database,
0:35:13 > 0:35:15it's not a legal requirement.
0:35:16 > 0:35:19It means that when you do the usual checks before buying a vehicle,
0:35:19 > 0:35:22any logbook loan may not show up.
0:35:22 > 0:35:26One of the things that the code of practice does is urges lenders
0:35:26 > 0:35:31to make a record, so we'll start to see different loans recorded against different vehicles.
0:35:31 > 0:35:37But that's not been in place before, so there is a lot of vehicles with bills of sales attached to them
0:35:37 > 0:35:41where we have no way of finding out whether these bills of sales are in place or not.
0:35:41 > 0:35:46It's a problem many used vehicle buyers are falling foul of.
0:35:46 > 0:35:50We get calls from people saying, "There's a bailiff on my doorstep,
0:35:50 > 0:35:54"he thinks this car's his but I've had no dealings with this company at all."
0:35:54 > 0:36:00When we explore and they explain the fact there's a bill of sale linked to that vehicle,
0:36:00 > 0:36:04then it becomes very clear they haven't got much of a leg to stand on.
0:36:04 > 0:36:07The practical steps are to negotiate with the finance company
0:36:07 > 0:36:10to almost buy back the vehicle which they already own.
0:36:10 > 0:36:16So Olly started a painful battle to get his bike back from the loan company.
0:36:16 > 0:36:19To get my bike back was an absolute nightmare.
0:36:19 > 0:36:26The loans company demanded £4,000 for my own bike back,
0:36:26 > 0:36:30which I had already paid £6,500 for.
0:36:30 > 0:36:33Obviously I refused, because this is my bike,
0:36:33 > 0:36:35why would I buy my own bike back?
0:36:35 > 0:36:41It took five months of legal wrangling, and in the end
0:36:41 > 0:36:46my solicitor suggested I make an offer of, I think £500.
0:36:46 > 0:36:50The lender accepted Olly's offer and gave back the bike,
0:36:50 > 0:36:53saving him from an expensive court hearing.
0:36:53 > 0:36:56But while the Bills Of Sale Act remains in place,
0:36:56 > 0:36:59other buyers may not be so lucky.
0:36:59 > 0:37:02For us, logbook loans, bills of sale are a 19th century product
0:37:02 > 0:37:05that should stay in the 19th century.
0:37:05 > 0:37:09We've been calling for government to abolish this particular product -
0:37:09 > 0:37:14it's outdated, it's unfair, it's out of touch with modern day society
0:37:14 > 0:37:16and it's time it was banned.
0:37:19 > 0:37:24Jason Shifrin owed millions of pounds to loan sharks.
0:37:24 > 0:37:26For a couple of years, he'd been borrowing from one
0:37:26 > 0:37:29to pay off another, until it finally got to the point
0:37:29 > 0:37:32where he had to admit he couldn't pay them back.
0:37:32 > 0:37:35But this wasn't like telling the bank you can't repay your overdraft.
0:37:35 > 0:37:39They're not the type of people that give you a second chance.
0:37:39 > 0:37:43If you're paying them money every month without a problem, they're great.
0:37:43 > 0:37:46If you say, "I've got a problem," they're not interested.
0:37:46 > 0:37:49They're interested in getting their money back.
0:37:49 > 0:37:51If they don't get their money back, they hurt you.
0:37:51 > 0:37:54I really didn't know what would have happened.
0:37:54 > 0:37:55Someone could have shot him or us,
0:37:55 > 0:37:57someone could have taken my children.
0:37:57 > 0:38:01Anything in your wildest nightmares could have happened.
0:38:02 > 0:38:06So the Shifrins sold their house and went into hiding.
0:38:06 > 0:38:08Nobody knew where we lived,
0:38:08 > 0:38:11even my closest friends didn't know where we lived,
0:38:11 > 0:38:14and any time we had to walk out the front door,
0:38:14 > 0:38:19it was a case of put a big coat on, hood up, keep your head down
0:38:19 > 0:38:22and just don't make eye contact with anyone.
0:38:22 > 0:38:25But Jason was determined to pay the money back
0:38:25 > 0:38:28so his family could live a normal life.
0:38:28 > 0:38:31To help him, his parents sold their house
0:38:31 > 0:38:33and cashed in their life savings.
0:38:33 > 0:38:38But it wasn't nearly enough money, and now they were involved, too.
0:38:38 > 0:38:41One day my dad was driving home from his factory
0:38:41 > 0:38:45and as he pulled onto his drive, three hooded men approached him
0:38:45 > 0:38:48and they said, "You need to come with us."
0:38:48 > 0:38:52The men grabbed Jason's dad and started taping up his arms and legs.
0:38:52 > 0:38:54He ended up getting badly hurt,
0:38:54 > 0:38:58because he was being thrown around on the floor and all sorts of things
0:38:58 > 0:39:00whilst they were trying to tape him up.
0:39:00 > 0:39:05Jason's mum called 999 and managed to scare the attackers off.
0:39:05 > 0:39:10That was by far the worst thing that's ever happened in my life
0:39:10 > 0:39:13and the most despicable.
0:39:13 > 0:39:17Not only have I ruined their life, not only have I taken their wealth,
0:39:17 > 0:39:19then you have to live with the guilt
0:39:19 > 0:39:25of knowing that your father has been hurt because of your actions.
0:39:25 > 0:39:31The Shifrins were subjected to a campaign of fear and intimidation by the loan sharks.
0:39:31 > 0:39:35To protect himself and his family, Jason had a state-of-the-art
0:39:35 > 0:39:39multi-camera CCTV system installed at his house.
0:39:39 > 0:39:43Now he was actually able to catch the loan sharks on camera.
0:39:43 > 0:39:47Some people that I owed money to, they walked onto the drive
0:39:47 > 0:39:49and they had a pickaxe,
0:39:49 > 0:39:55and they smashed about four of the windows in on my wife's car.
0:39:55 > 0:39:58Jason was still making what payments he could,
0:39:58 > 0:40:03but he owed so much to so many people that it was never enough.
0:40:03 > 0:40:05He was getting more and more desperate.
0:40:05 > 0:40:09I had to go to a meeting with some people that I owed money to
0:40:09 > 0:40:16and I knew if I turned up at the meeting I would get hurt, at best.
0:40:16 > 0:40:19'So I'm trying to think of a way of delaying the meeting,'
0:40:19 > 0:40:24and I decided the best thing I can do is have a crash on the M25.
0:40:25 > 0:40:28So I drove into the back of a lorry.
0:40:28 > 0:40:34I waited for the traffic to slow down and I pretended I misjudged the brake
0:40:34 > 0:40:38and I slammed straight into the back of a juggernaut.
0:40:44 > 0:40:49Jason's car span out of control and ended up on its side in a ditch.
0:40:49 > 0:40:51Someone called an ambulance.
0:40:51 > 0:40:54I had about four or five phones in the car at the time
0:40:54 > 0:40:56and they were all just ringing constantly.
0:40:56 > 0:41:00I said, "Will you answer it and tell them that I've been in an accident."
0:41:00 > 0:41:04Obviously she didn't have a clue who she was talking to
0:41:04 > 0:41:07and she told them that, and it got me the time I needed.
0:41:07 > 0:41:10To Jason, at the time,
0:41:10 > 0:41:14deliberately crashing his car seemed like the only thing he could do.
0:41:14 > 0:41:17Sometimes to survive to the end of the week means
0:41:17 > 0:41:21you have to smash into the back of a lorry on the M25.
0:41:21 > 0:41:24That seems the most irrational thing you could ever possibly say,
0:41:24 > 0:41:28but I'm walking into the lions' den.
0:41:28 > 0:41:32I'm walking into a meeting where there are killers sitting there.
0:41:32 > 0:41:36Many times, Jason considered telling the police about what was going on.
0:41:36 > 0:41:40But although he had been in contact with them several times
0:41:40 > 0:41:43throughout his ordeal, he was too terrified
0:41:43 > 0:41:46to reveal the full story, in case the loan sharks found out.
0:41:46 > 0:41:50Making a formal statement simply wasn't an option.
0:41:50 > 0:41:55The police said they could help me if I'd provide them with information,
0:41:55 > 0:41:59and they'd effectively put me into protective custody.
0:41:59 > 0:42:03But why would I want to live the rest of my life as David Jones,
0:42:03 > 0:42:06living in some remote part of the country?
0:42:06 > 0:42:09That's not living. I might as well have been dead.
0:42:10 > 0:42:12Without help from the authorities,
0:42:12 > 0:42:16it was up to Jason to deal with the problems by himself.
0:42:16 > 0:42:19So far it's taken him nearly a decade,
0:42:19 > 0:42:23and he still has debts hanging over him.
0:42:23 > 0:42:26I still currently owe the best part of £500,000.
0:42:26 > 0:42:30Some of that money is owed to gangsters/money lenders,
0:42:30 > 0:42:33and some is owed to family and friends,
0:42:33 > 0:42:37and I'm working hard to try and pay them back.
0:42:37 > 0:42:41Even though the size of Jason's debt is unimaginable to most people,
0:42:41 > 0:42:45the trauma he went through is a common experience
0:42:45 > 0:42:47for anyone who borrows from loan sharks.
0:42:47 > 0:42:53People have got in touch with me and said, "We feel really relieved
0:42:53 > 0:42:57"because we only owe £2,000 and you owe all this money."
0:42:57 > 0:43:00But the difference between them and me is noughts.
0:43:00 > 0:43:06So if you're in debt of £100 or £1 million, you feel the same pressure.
0:43:06 > 0:43:09Debt is debt and it's horrible. Horrible.
0:43:22 > 0:43:25Subtitles by Red Bee Media Ltd