This week’s papers were full of articles about the schemes of Eddie Davenport. I am quite surprised at how long it has taken the marketplace to wake up. Davenport’s features were pretty standard: high showbiz profile, glossy office address, promises which seemed to be too good to be true and so on.
Yet so many people have fallen for the scheme. The question is why. Probably because they were desperate.
In desperate times desperate people do desperate things. The answer is not more regulation or more government interference. The answer is for borrowers to apply common sense. Whenever there is a recession, whenever banks tighten up these types of loan fraud swindlers turn up. The list is long and we’ve seen them all. The common features are very high upfront fees and promises of an easy ride when the borrowers know that their requirements are difficult to fulfil.
So if borrowers know they have difficult requirements then they need to work with a team who acknowledge that they are difficult, who will explain the chances of success and who will then work their hardest. A team which can be checked simply by looking at its track record.