In April of this year, we interviewed Shermadine Dennison, who borrowed two thousand dollars from a micro-credit company called Bathsheba Limited. That was in November of 2024, but in a few months she ended up owing $5,500 dollars. A large part of that was a "recovery fee" of two thousand dollars. Here's how she explained her situation:
Voice of: Shermadine Dennison, Borrowed 2k, Owes 5.5k
"So I sent an email to the boss asking for them to freeze the interest which was at the time 20% to freeze the interest and I got a response that they cannot freeze the interest. And so what I did was pay them what I have, which was a lesser amount. And the following week or two weeks after they took out a summons, I got served and on that summons it had that I owed them an additional $2,000 which they call, I'm trying to remember what they called it, and there was another fee for interest and it was some other fees. That I believe that when you obtain these loans from these lending institutions they really take advantage of us, because in the past they used to charge 4% and now they say it's 20% but really sometimes it's a 100% they are getting back or sometimes it's 200%."
"At present my bill stands at $5,517 dollars. That alone could put me into another stroke"
Well, the moneylender took Dennison to the Magistrate's court where she has been vindicated. Magistrate Baja Shoman ruled on it last week. In her written judgement she says, quote, "the recovery fee being an additional 100% of the amount borrowed, is considered by the court as excessive and unconscionable...Therefore, having found the recovery fees to be excessive and unconscionable, the Court does not find it to be enforceable."
The magistrate noted that the promissory note itself must contain all the terms of the contract, and in this case the the recovery fee was in a separate document.
In her closing she stated that the promissory note is unenforceable and the suit is unenforceable.
Dixon was represented by Steve Perera and Bethesda by Raymond Kearney. Kearney told us he will not appeal and hopefully she enjoys the benefit. He maintains that she signed and accepted the terms.
