A priest who does a lot of work among usury victims has warned that loan sharks are embarking on a new method in their efforts to bypass legal constraints. They are coercing victims into signing contracts were original debts are inflated to hide exorbitant interest rates, he says.
Fr John Avellino rightly points out that any agreements drawn up in this way are vitiated because were the interest portion of the loan to be listed separately it would be illegal. He calls on lawyers and notaries to be aware of the dirty games played by loan sharks, urging them to distance themselves from such illegal behaviour.
Loan sharks exist because they find vulnerable persons in need of money very badly. One big question, therefore, concerns the background of the people whose desperate financial situation is such that they end up at the mercy of loan sharks, who are always more than ready to take advantage of them by charging very high interest rates.
Is it correct to assume that one of the main sources in the area of non-business-related usury cases is the presence of a very menacing and widely diffused gambling virus? More importantly, are the authorities doing everything in their power to identify the real situation in this sector and respond to it in a way that leaves no doubt that the good of the person is truly and fully at the top of the country’s priorities?
With regard to the role of lawyers and notaries in the new trend of interest-hidden agreements between loan sharks and their victims, it has been pointed out that, very often, private deals are struck. This could happen either in front of lawyers and/or notaries or simply between the parties.
Of course, a professional person worthy of the name would be expected to do something if s/he suspects that one of the parties is signing under duress or that the law is somehow being broken. They can quietly point out any “mistakes” and ask for these to be rectified or suggest that further professional advice is sought. They can also go a step further.
An agreement signed a few months ago by the Notarial Council of Lecce, the San Nicola e Santi Medici Foundation of Bari and the National Anti-Usury Consultative Body of Bari provides for a collaborative effort to offer concrete assistance to both citizens and businessmen who end up being victims of usury.
The foundation and the consultative body carry out preventive activities in terms of education and information, promoting a culture of legality and listening to individuals and businessmen in difficulty. In the words of district president Antonio Novembre, with the signing of the agreement, the notarial profession demonstrated that it is an institution for the protection of the economic and social system in essential moments of the life of persons and businesses, having wide-ranging legal vision, being attentive to the interests of citizens and society and coming in aid of the most economically vulnerable parties.
In practice, these notaries of the Salento undertake to provide free advice on problems of a notarial nature that involve parties who are victims of usury identified by the signatory bodies and to apply reduced fees for drawing up financing and mortgage documents for such persons.
The fight against the scourge of usury requires a united front. All those who can give a helping hand to combat loan shark activities and assist their victims would be expected to come forward and contribute as best they can.