Just a handful of reports, but many cases of illegal moneylending
Experts say that loan sharks are present and known in every town and city of Malta.
1 August 2013, 12:00am
James J. Piscopo
James J. Piscopo
2 min read
Matthew Zahra was allegedly murdered after a 6,000 loan he gave to Jason Galea accumulated into a 500,000 debt.
Despite registering only a handful of cases each year, the usury problem in Malta still persists in each town, experts say.
Speaking to MaltaToday, Dr John Avellino from Caritas' Foundation for Usury Victims, said that going by his experience in this field, the alleged sum of half a million mentioned in local courts this week is realistic.
In the compilation of evidence against Jason Galea, the prosecution said he owed €500,000 to one of the victims. Galea is accused of murdering three convicted criminals within a year, namely Mario Camilleri Sr ('l-Imniehru') and his son Mario Jr two weeks ago and Matthew Zahra in August 2012. Apparently, the half a million figure ballooned from a debt of just €6,000.
"This is not the first time an amount of some thousands of euros increased to such figures, due to an interest rate of 100% or more. Your debt can easily double after a month if you don't pay in time," Dr Avellino said.
But victims refrain from reporting to the police, with the loan sharks making credible threats such as burning down the victims' doorstep. In addition to this, some of those who decide to request police assistance are not willing to testify in court, which leads the police to drop the case due to lack of evidence.
According to Avellino, these loan sharks are present and known in every town and city.
"When a victim requests our help, we tell him to stop paying immediately. By that time he would have paid far more than what he should have. At that point, we contact the loan shark and try to enter into reasonable discussions and negotiations. At times they accept to lower the interest rate, but sadly this isn't always the case."
Although drug problems may lead to usury, this isn't the only reason people fall into this trap, with other social problems such as poverty also being a factor, according to Avellino.
"I had cases where a family resorted to usury after being unable to make ends meet. There were others who took this step after receiving the electricity bill. In other circumstances, there are those who went on this path after a family member became seriously ill. Whatever the reason, it is difficult to get out of it once you're in," he explained.
Avellino concluded that while in local legislation usury became a criminal act in 2002, the punishments in relation to this crime are still relatively low.
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@Better future: none of the things you mention justify usury which is illegal. Lon-sharks prey inhumanly on the weakness of others. What you write are sweeping statements and generalizations.
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the problem is that these so called sharks they dont come knocking at your door to give you a loan but you go and knock their door to get a loan knowing quite well that failing to miss even one payment youre asking for trouble,money blinds a lot of people thats the whole story.
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In the case of this loan shark from Valletta, he was definitely trying to bit much more than his mouthful. Could he possibly not know who the debtor was? Or is this a case of fools rushing in were angels fear to trade? I think that with such a terrifying CV as that of the alleged murderer, the loan shark's due diligence of his 'client' left much to be desired.
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Dr Avellino forgets to mention that in Malta, solutions to health problems are provided for free by taxpayers. Also he forgets to mention just how much and how many people gamble (at their option, no one forces them), live beyond their means (huge, expensive cars, boats and houses), and say, organise weddings and Holy Communion parties far grander than their neighbours and far outside their means. So please, be kind to our intelligence and do not excuse the guys/girls that gets sucked into this system. I would recommend a large dose of disciplinary action (plus budgeting know how) to get them back to sensible ways, rather than a cuddle, candies, money and a sweet pat on their bottom.
