Sub Prime Lending

Sub Prime Lending advice from Ralli

Sub prime lenders provide funding to high risk customers who do not meet the major bank’s lending criteria. Sub Prime lenders have been accused of everything from blatant loan sharking to causing the world banking crisis! Of course there are rogues in this, as in all walks of life but many successful ventures would not get off the ground without this funding being made available.

The risk involved with such lending is bound to result in higher interest rates than those published by the high street banks, after all it’s easy to offer low rates if you do not actually lend any money!

Investigations into the sub prime lenders can result in allegations that the principles are just running an advance fee fraud with no intention of doing anything other than taking a serious of payments as they go along, allegedly to facilitate the loan, with no intention of actually providing the money to the borrower.

Other allegations include suggestions that it is a ‘phishing’ exercise to get information about bank accounts and personal details which will be used to fleece the ‘would be’ borrower.
The prosecution will often produce witnesses who will tell a tear jerking story blaming everyone except themselves or their own ineptitude for their company’s demise.

Such heart rending stories could take in not only a Jury but initially an investigator who is not experienced enough in such matters. Ralli have successfully defended such cases on behalf of clients who lend both nationally and internationally. Occasionally the loans are for very large numbers (tens of millions of pounds) but the sums are not always large although the number of transactions might be high.

Sometimes loans form part of a wider picture or a trading programme e.g. the borrowing is used to fund large FX trading transactions or share purchases (this can lead to insider dealing allegations). A funder could easily get drawn into allegations of conspiracy in such circumstances!

The above highlights only a few examples of potential problems for lenders. The common theme is that there are huge risks for lenders. Unlike Ralli, general criminal practitioners without civil and commercial litigators, and corporate and partnership departments to back them up just do not have the knowledge to identify and address the problems on the horizon.

Sub Prime Lending

Sub Prime Lending advice from Ralli

Ralli Solicitors LLP does have the wider disciplines to call upon and this together with our experience of these type of cases gives Ralli an edge over competitors in the field of defending business crime.

Contact 0161 615 0660

For help and assistance on queries relating to sub prime lending, contact our Criminal Defence team on 0161 615 0660 or get in touch by filling out one of our online enquiry forms.

Find out more on our Criminal Law Defence page.


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