A ruthless American firm run by an ally of Donald Trump has bought the debts of thousands of Britons on the cheap and is driving many towards financial ruin, a Mail on Sunday investigation can reveal.
Cerberus Capital Management, a private equity giant behind investments in firearms and military contractors, has bought loan books valued at more than £20 billion from major British banks and the UK Government since the financial crisis.
In many cases, it has snapped up these loans at discounted prices – and is now aggressively chasing the debts to make a return on its investments.
Many borrowers – mostly small-business owners and mortgage holders who originally took out loans with trusted high street names such as Northern Rock and Lloyds Bank – are being forced into complex legal battles to avoid bankruptcy.
Others face eviction from their homes as Cerberus takes a hardline approach to loan terms, despite borrowers insisting that they could keep up their repayments.
MPs last night described the borrowers’ ordeal as a ‘national scandal’, labelling Cerberus as a ‘veritable hound of hell’.