Just a handful of reports, but many cases of illegal moneylending

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.