Melbourne businessman George Papageorgiou falls victim to online lender

·

Melbourne small business owner George Papageorgiou has opened up about how he fell victim to an online lender as he struggled to pay debts he owed to the Australian Taxation Office (ATO) and suppliers.

Mr Papageorgiou, who fixes food trucks and other commercial trucks for a living, told ABC News he found a lender on the internet and took on a loan for $500,000.

“I thought we were getting the full amount and you could refinance it after a year. But it didn’t work out that way,” he said.

The lender took the interest up-front and gave Mr Papageorgiou $380,000. He’d already signed the contract and put up the family home as collateral, with his wife as guarantor.

George Papageorgiou says he was in a rush to get a loan and made a mistake. (ABC News: Nassim Khadem

“We’ll probably have to sell the house,” he told ABC News.

“My wife’s not very happy, but she’s very supportive. So once the house goes, the kids will be sad, because it’s the family home.”

Ms Papageorgiou is among a growing number of small business owners who face hardship after falling prey to online lenders offering them quick cash. They sign up to contracts they don’t understand and land them with hundreds of thousands of dollars of more debt.

A spokeswoman for ASIC told ABC News that high-cost credit and predatory lending practices to small businesses were one of ASIC’s enforcement priorities for 2024 and that alleged misconduct could be reported to the regulator.

Source: ABC News.

Advertisement

Share:

KEEP UP TO DATE WITH TGH

By subscribing you accept our Terms of Service and Privacy Policy.

Advertisement

Latest News

Capturing legacies: The proika exhibition’s emotional tribute to Greek migrants

On Wednesday, November 20, the proika exhibition opened to a crowd of eager guests at the Thematikos x MBO Tailors creative space.

Golden Era Gala: A reunion with a cause to combat brain and rare cancers

White Pearl Foundation and Cquence Foundation have announced the Golden Era Gala to be held at the Hyatt Regency Sydney on November 30.

Melbourne scientist Steven Petratos offers hope to thousands with multiple sclerosis

The image of Steven Petratos’ grandfather, confined to a chair with trembling hands, left an indelible mark on his childhood.

Former Victorian Premier Jeff Kennett to launch book on Nick Thyssen’s legacy

Former Victorian Premier Jeff Kennett, supporter of Greece and its diaspora, will launch the biography of Nick Thyssen (Nikos Theodosiadis).

Ithacans in Melbourne enjoy sell-out film screening to support archaeological preservation

On Sunday, at Palace Como in Melbourne, a sell-out crowd of 135 Ithacans and friends gathered to see the historical epic, The Return.

You May Also Like

Greek fans evicted from Australian Open following Maria Sakkari victory

Police say up to 20 people were ejected from the Australian Open for disruptive behaviour. The group of men were supporting Greek player Maria Sakkari in a late afternoon match on Court 8 against Nao Hibino of Japan.

Turkish Cypriot leaders condemn molotov attack on Limassol mosque

The Turkish Ministry of Foreign Affairs have strongly condemned the Molotov bomb attack on the İbrahimağa Köprülü mosque in Limassol.

Maria Skyllas-Kazacos’ invention paves way for planned manufacturing base in Queensland

Maria Skyllas-Kazacos’ work on vanadium batteries could pave the way for a mine which would create about 200 jobs in north-west Queensland.