This is why you prosecute student loan defaulters trying to skip the country

This is the positive result of prosecuting one student loan defaulter.

Anthony Davidson studied for one year at the Central Institute of Technology in Upper Hutt during 1994, before moving to Australia the following year.

He borrowed “about $7000”, and had no intention pay it back as interest ballooned the owed amount to $17,000 this year.

“I always knew that the loan was there but I didn’t really do anything about it until I saw on the news that the other bloke got arrested,” the father of three told ONE News.

He had no intention of paying it back when he skipped out. But now that there are very real consequences people are taking action to resolve their debt to the government.

Mr Davidson had planned a family holiday to Wellington in January and said he thought “geez, I better do something about this, or that’ll be me next time I come over”.

“I’m going to have to get on top of this before I fly in or I’m going to look like an idiot at the airport,” he recalled.

The small business owner with a mortgage said he rang IRD and “told them everything”.

“They set up an automatic payment and I paid some money upfront … Obviously there are plenty of other blokes like me out there. Within a couple of years it should be all paid back.”

The payments allowed Mr Davidson to enjoy his family trip to the capital.

The funny thing is Labour opposed these sorts of actions. You have to wonder why. Perhaps they just want to add student loan defaulters to criminals, bludgers, poofs and Maori as their natural constituency. Labour seems to have become a party of the margins.

 

– TVNZ

 


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  • R&BAvenger

    Labour thinks they can appeal to those that have a chip on their shoulder. Having no intention of paying back your student loan after you have signed a loan agreement saying you will, as well as receiving and spending the monies and receiving your higher education as well, says a lot about you as a person.
    Perhaps maturity, plus real consequences have finally gotten through to some people.
    I think consequences most likely have had the best effect and this does need to be continued as we have had a couple of generations of people now who think they can not bother to meet their obligations to their fellow taxpayers.
    If you’d dealt with the $7000 with repayments earlier, then it would have just been a distant memory.

  • Crowgirl

    This is a fantastic outcome for the government/taxpayer. I’m not sure why they didn’t do it sooner. If Labour/Greens want to stick up for student loan dodgers, they won’t find themselves with a lot of company. Every story I’ve seen on this stuff on social media has ZERO sympathy for the dodgers in the comments.

    It makes no sense that they want to clamp down on trusts with income that is earned off-shore and that they cannot tax, but will go into bat for people who’ve borrowed money directly from the NZ Taxpayer, with no intention of paying it back. That’s where the real thievery is. They’re just on another planet to the rest of us.

  • Oh Please

    Here’s an idea: why don’t judges do the same? Apply the three-strikes rule, give recidivists long sentences, give youth offenders hard labour. See how that affects future crime.

  • Drhill

    Wonder if New Zealanders will go into Australian detenion centre if they owe student loan money?

  • Metricman

    Isn’t the law of consequences a wonderful thing. I will bet he sleeps better too.

  • Keanne Lawrence

    It has certainly had an impact on the defaulting borrowers with an increase in payments.
    However the really important aspect is being overlooked by many and that is having a law then using the law as it was intended.
    Very refreshing after so many soft sentences and wet bus ticket decisions being handed down by the judiciary. We can only hope they take a lesson from this that trying to be Mr Niceguy is simply nurturing criminals elements in society.

  • So this entitled little prat borrows $7,000 and lets it turn into $17,000 before he decides to pay it back?

    I’d love to purchase something from this genius’s business. I’m assuming with that kind of logic he buys it for 5 dollars and sells it for three!

    God I loathe people that steal off me!

  • metalnwood

    $17,000 does not seem like a lot for a loan that is 22 years old and started at $7000. We are pretty generous.

  • Miss Phit

    Labour – the party of the margins.

    I like it. Says it all really.

  • SlightlyStrange

    Good on him for finally stepping up to the plate and doing something about it.
    Might need another arrest of a defaulter in 6-12 months time to keep the news “fresh” in the minds of other defaulters.

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