Man found not guilty of usury
A man who loaned another €13,980 was this morning found not guilty of usury but was fined €500 for threatening the borrower.
John Cardona, who borrowed the money from Francis Gabriele, accused Mr Gabriele of extorting an exorbitant amount in interest in an attempt not to pay back a sum he had legally borrowed.
Mr Gabriele had given Mr Cardona the money after they signed a contract with the condition that Mr Cardona would pay back the amount within three months.
The court heard that the payments were irregular and at one point Mr Cardona had an outstanding amount of €2,796.
Mr Cardona filed a police report about Mr Gabriele and claimed that he had threatened him. He claimed to have paid Mr Gabriele €34,950 over a period of six years and that he had initially borrowed only €230.
Testifying Mr Gabriele admitted to threatening Mr Cardona to pay the money back and said that he had given Mr Cardona almost €14,000 and that a contract had been drawn up.
Magistrate Audrey Demicoli found Mr Cardona’s testimony to be not very credible and said that it seemed that he invented the whole scam in order to avoid paying the outstanding amount.
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victor vella
Nov 8th 2009, 11:26
ooooooooops sorry nikber u nitghallem
John A. Zammit
Nov 6th 2009, 19:41
A contract had been drawn up; very often such contracts are drawn up in a way that the usury rates of interest are included in the amount that the contract shows as the amount being lent. Utmost care must therefore be taken before giving credit to such contracts.
Joe Cordina
Nov 6th 2009, 15:50
It is not so clear cut and simple. Whilst one can lend money to a third party, this lending is to be only a one off thing. Regular lending to various persons could constitute an offence under the financial regulations
D.Agius
Nov 6th 2009, 15:36
@victor vella
No it isn't. It is only illegal to lend money and ask for exagerated interests.
Dr. Etienne A. Calleja
Nov 6th 2009, 15:35
No it isn't. You can lend and borrow money provided that the interest rate charged is not superior to that provided for in the Civil Code [Chap. 16 of the Laws of Malta]. You can also determine payment through monthly installments, securing the payment by way of Bills of Exchange, for example.
Licenced institutions who also lend money are however advisable because there exists greater protection for the borrower with the added bonus of other financial products available, which may not be offered to the consumer unless licenced!
Dr. Etienne A. Calleja is a lawyer in private practice
victor vella
Nov 6th 2009, 13:05
Isn't it illegal to lend money if you do not have a licence to do so?