Latvian lender's soul collateral gimmick irks churches

metaw3 · 07-08-2009, 08:30 PM

http://www.google.com/hostednews/afp...ZzlzxiK1Mb4l-A

Latvian lender's soul collateral gimmick irks churches

5 hours ago

RIGA (AFP) — A Latvian credit company asking borrowers for their immortal souls as loan collateral has outraged churches in the recession-hit Baltic nation, sparking demands for a formal investigation.

"We are treating the case very seriously," Roman Catholic Cardinal Janis Pujats told AFP on Wednesday.

Pujats said he and the heads of Latvia's Russian Orthodox and Lutheran churches had asked the interior ministry formally to investigate the case, fearing "Satanists, not just cynical money lenders" could be behind it.

"Companies like this can devastate people both mentally and materially," he added.

Kontora, the Riga-based company in question, offers loans ranging from 50 to 500 lats (70-700 euros, 100-1,000 dollars) to anyone, no matter their age, credit history or whether they have material collateral.

The loans are issued for 90 days at an annual interest rate of 365 percent.

"There is just one condition, a borrower should pledge their soul," says the company website.

If a borrower fails to return the money, their soul belongs to the company. "It?s just a business. We lend real money and if a person believes that a soul is important to them, we will definitely get back our money. All is fair," an unnamed company representative reportedly told Latvia's Vesti Segodna newspaper.

Company representatives were not available for comment for AFP. It is unclear how many loans have been issued.

The gimmick is getting mixed reviews among average Latvians struggling as their country's economy is set to contract 18 percent this year.

"Wow, I would take the loan from them. Where can I find them? I?m not superstitious. I think it?s a great joke," Renars, a 29-year-old father of two told AFP.

"It's madness. I feel really petrified to learn how far we have gone in our country," said a 47-year-old civil servant Ilze, who previously had trouble making mortgage payments.

07-08-2009, 08:30 PM	#1
metaw3 Avalon Senior Member Join Date: Oct 2008 Location: Canada Posts: 431	Latvian lender's soul collateral gimmick irks churches http://www.google.com/hostednews/afp...ZzlzxiK1Mb4l-A Latvian lender's soul collateral gimmick irks churches 5 hours ago RIGA (AFP) — A Latvian credit company asking borrowers for their immortal souls as loan collateral has outraged churches in the recession-hit Baltic nation, sparking demands for a formal investigation. "We are treating the case very seriously," Roman Catholic Cardinal Janis Pujats told AFP on Wednesday. Pujats said he and the heads of Latvia's Russian Orthodox and Lutheran churches had asked the interior ministry formally to investigate the case, fearing "Satanists, not just cynical money lenders" could be behind it. "Companies like this can devastate people both mentally and materially," he added. Kontora, the Riga-based company in question, offers loans ranging from 50 to 500 lats (70-700 euros, 100-1,000 dollars) to anyone, no matter their age, credit history or whether they have material collateral. The loans are issued for 90 days at an annual interest rate of 365 percent. "There is just one condition, a borrower should pledge their soul," says the company website. If a borrower fails to return the money, their soul belongs to the company. "It?s just a business. We lend real money and if a person believes that a soul is important to them, we will definitely get back our money. All is fair," an unnamed company representative reportedly told Latvia's Vesti Segodna newspaper. Company representatives were not available for comment for AFP. It is unclear how many loans have been issued. The gimmick is getting mixed reviews among average Latvians struggling as their country's economy is set to contract 18 percent this year. "Wow, I would take the loan from them. Where can I find them? I?m not superstitious. I think it?s a great joke," Renars, a 29-year-old father of two told AFP. "It's madness. I feel really petrified to learn how far we have gone in our country," said a 47-year-old civil servant Ilze, who previously had trouble making mortgage payments.