LOANS WITHOUT SECURITY

Hokitika Guardian, 4 June 1930, Page 3

LOANS WITHOUT SECURITY

HIGH. INTEREST RAID.

WOMAN DKCLA.K El) RANKIUJPT

AUCKLAND, May 30,

‘'Coming as I do from Otago, .the lending of money like this without security is strange,” said Mr Justice rierdman during the hearing in the Supreme Court of a petition to make bankrupt a woman who had had large . sums of moimy lent to her which it is now alleged she cannot repay. The evidence showed that three women were involved In a- series of loan transactions which his Honour described as “most extraordinary.” He ultimately rejected tli e view that the woman who lent the money had been carrying on the business of a money slender, and adjudicated the other woman bankrupt. The petitioning creditor was Emily Alma, A!way (Air Crocker), who sought to have Winifred Baker, of Auckland, clerk, declared bankrupt. Mr Terry, on behalf of Miss Baker, opposed the petition. Mr ■Cocker said the acts of bnnkrupcy alleged were two. Debtor bad c,;.4led a meeting of creditors, and they had called on her to file a debtor’s petition, and she had given notice that she had suspended payment of her debts. Debtor owed the petitioning creditor £025 for moneys advanced. Air Terry said that for practically two years petitioning creditor had made a series of loans at an excessive rate of interest. He alleged that she was ,in fact, an unregistered money--lender, and the debts were there!ore illegal, void, and not recoverable. 'Pile petitioning creditor. Alls hmily Alina Always, said she had a draper’s slim in Grey Lynn, owned hv her husband and herself. This occupied all her time. Tn September, 1928, a friend, Aliss Smith, told her about the debtor. Miss Winilred Baker, as a moneylender who would lake from her any money she had to lend, but Aliss Smith approached her to lend if to Aliss Baker. Witness had never similarly lent money to anyone else, and had never advertised money to | lend. Witness lent Aliss Baker several

small amounts through Miss Smith, and in October. 1928, she lent £2”Q. A further £250 was lent in February, 1929. and £IOO in April. 1930. Witness said the rates 6f interest were high but they were the terms offered

■ v Miss Maker. No security was offered. Witness had lent Aliss Baker C5 V ) and received beck £!”5 in interest. She had not received hack any of- the principal. Witness said her first large traiwm tion was to lend £2OO at 25s a week interest. 'The second was a loan of £250 at the rate of £2 a week, and the third loan oi £10') at 30s a week.

His Honour: What is the rate of interest, on these loans. Air 'lorry? Air 'Perry: 'The first one works out at 321 per cent., the second at o2 per cent., and third at 78 per cent. V.'iness said sin. understood AI i- s Baker was a licensed moneylender. Air Cocker said Aliss Baker was a clerk in the office of a registered moneylender.

After hearing lengthy evidence, his Honour said tip. petitioning creditor was not a moneylender in the sense that she carried on the business of moneylending. He added: In m\ 'minion, therefore, a debt exists at the present time payable by the debtor to the D'ditinning creditor, and T shall therefore make an order adjudicating debtor bankrupt, ads o! bankruptcy having been proved.”