Grandfather took his own life after racking up £20k of debt with a dozen payday loan companies, inquest hears

 

Ian Jordan, a grandfather described by his daughter Samantha as the “life and soul of the party” was unable to cope with payday loan debts which spiraled out of control, and took his own life, an inquest has heard.

The 60-year-old, from Southampton, Hampshire, committed suicide last year. He owed around £20,000 to more than a dozen payday loan companies – one of which was charging him more than 5,000 per cent interest. Today his family attacked payday loan firms for lending money to people who cannot afford to pay them back. Mr Jordan’s daughter, Samantha Carr, said: "He was borrowing money to pay off debts [which was] to pay off debts. The interest rate is one thing, the fact that you have already got this debt was another. It just spiralled out of control."

The court heard that Mr Jordan had been unemployed for years due to poor health and suffered with a hiatus hernia. Loan firms continued to take money from him even after he had been taken off jobseekers allowance. “They were just taking it out of his bank account. He had no money in the last few days of his life,” his daughter told the Southern Daily Echo, Southampton. “Why do they still lend money to people when you have got debt? My main concern is to make sure that this doesn't happen to anybody else.”

Southampton Coroner Grahame Short recorded a verdict of suicide at the inquest which heard that Mr Jordan died after taking an overdose of painkillers.

And it emerged that loan companies bombarded Mr Jordan’s phone with texts after he died late last year. His ex-wife, who asked not to be named, said: "People receive calls after they are dead and Ian received 1,000 texts after his death. They pursued the family too.”

The tragic death of the 60-year-old is an extreme example of the misery of hundreds of thousands of Britons resorting to taking out payday loans to make ends meet. Last year 1.6 million people took out the short-term loans – with a total of £2.5 billion borrowed in this way. But there is mounting concern over the dangers of the loans, which can swiftly escalate far beyond the original amounts borrowed. And the news of Mr Jordan’s suicide comes just days after the Financial Conduct Authority announced new rules to curb the amounts payday lenders can charge. From next January, interest and fees charged by short-term lenders must not exceed 0.8 per cent of the amount borrowed per day. Fixed default fees will be capped at £15 and the total cost of a loan should never be more than double the amount borrowed.

Video: Wonga forced to pay £2.6 million compensation

Totally unrelated to Mr Jordan’s death, one of Britain’s best-known payday loan companies, Wonga – notorious for annual interest rates approaching 6,000 per cent – could yet face prosecution for lying to its borrowers. Police are considering evidence from a FCA investigation earlier this year which discovered the company had sent threatening legal letters from law firms which did not exist – something which has seen Wonga ordered to pay £2.6 million in compensation to the 45,000 people affected.

In a statement, a spokesperson for City of London police said: “In its role as the National Policing Lead for Fraud the City of London Police are now examining the large quantity of potential evidence gathered by the FCA in the course of their investigation to ascertain whether they should now begin its own criminal investigation into this matter.”

For confidential support call the Samaritans in the UK on 08457 90 90 90, visit a local Samaritans branch or click here for details

Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    SThree: Trainee Recruitment Consultant

    £20000 - £25000 per annum + OTE £45K: SThree: SThree Group have been well esta...

    Recruitment Genius: Call Centre Debt Collector - Multiple Roles

    £21000 per annum: Recruitment Genius: This is an exciting opportunity to join ...

    Guru Careers: Financial Director / FD / Senior Finance Manager

    Up to 70k DOE: Guru Careers: We are seeking an experienced Financial Director ...

    Recruitment Genius: Junior / Apprentice Sales Executives - OTE £50,000

    £11000 - £50000 per annum: Recruitment Genius: This financial company offer ma...

    Day In a Page

    Turkey-Kurdish conflict: Obama's deal with Ankara is a betrayal of Syrian Kurds and may not even weaken Isis

    US betrayal of old ally brings limited reward

    Since the accord, the Turks have only waged war on Kurds while no US bomber has used Incirlik airbase, says Patrick Cockburn
    VIPs gather for opening of second Suez Canal - but doubts linger over security

    'A gift from Egypt to the rest of the world'

    VIPs gather for opening of second Suez Canal - but is it really needed?
    Jeremy Corbyn dresses abysmally. That's a great thing because it's genuine

    Jeremy Corbyn dresses abysmally. That's a great thing because it's genuine

    Fashion editor, Alexander Fury, applauds a man who clearly has more important things on his mind
    The male menopause and intimations of mortality

    Aches, pains and an inkling of mortality

    So the male menopause is real, they say, but what would the Victorians, 'old' at 30, think of that, asks DJ Taylor
    Man Booker Prize 2015: Anna Smaill - How can I possibly be on the list with these writers I have idolised?

    'How can I possibly be on the list with these writers I have idolised?'

    Man Booker Prize nominee Anna Smaill on the rise of Kiwi lit
    Bettany Hughes interview: The historian on how Socrates would have solved Greece's problems

    Bettany Hughes interview

    The historian on how Socrates would have solved Greece's problems
    Art of the state: Pyongyang propaganda posters to be exhibited in China

    Art of the state

    Pyongyang propaganda posters to be exhibited in China
    Mildreds and Vanilla Black have given vegetarian food a makeover in new cookbooks

    Vegetarian food gets a makeover

    Long-time vegetarian Holly Williams tries to recreate some of the inventive recipes in Mildreds and Vanilla Black's new cookbooks
    The haunting of Shirley Jackson: Was the gothic author's life really as bleak as her fiction?

    The haunting of Shirley Jackson

    Was the gothic author's life really as bleak as her fiction?
    Bill Granger recipes: Heading off on holiday? Try out our chef's seaside-inspired dishes...

    Bill Granger's seaside-inspired recipes

    These dishes are so easy to make, our chef is almost embarrassed to call them recipes
    Ashes 2015: Tourists are limp, leaderless and distinctly UnAustralian

    Tourists are limp, leaderless and distinctly UnAustralian

    A woefully out-of-form Michael Clarke embodies his team's fragile Ashes campaign, says Michael Calvin
    Blairites be warned, this could be the moment Labour turns into Syriza

    Andrew Grice: Inside Westminster

    Blairites be warned, this could be the moment Labour turns into Syriza
    HMS Victory: The mystery of Britain's worst naval disaster is finally solved - 271 years later

    The mystery of Britain's worst naval disaster is finally solved - 271 years later

    Exclusive: David Keys reveals the research that finally explains why HMS Victory went down with the loss of 1,100 lives
    Survivors of the Nagasaki atomic bomb attack: Japan must not abandon its post-war pacifism

    'I saw people so injured you couldn't tell if they were dead or alive'

    Nagasaki survivors on why Japan must not abandon its post-war pacifism
    Jon Stewart: The voice of Democrats who felt Obama had failed to deliver on his 'Yes We Can' slogan, and the voter he tried hardest to keep onside

    The voter Obama tried hardest to keep onside

    Outgoing The Daily Show host, Jon Stewart, became the voice of Democrats who felt the President had failed to deliver on his ‘Yes We Can’ slogan. Tim Walker charts the ups and downs of their 10-year relationship on screen