The Vincy family is wealthy and aloof, though Fred Vincy has "debt on his mind" (323). Their eldest children are spoiled and, though they have known the Garth family for a long time, Mr. and Mrs. Vincy now try to keep away from the family who they consider to be lower-class. Fred owes "small debts" (326) to several people after "some losses at billiards" (324). He has lamed a horse and accumulated many gambling debts, but he is yet to ask his father for money. Instead, he visits Mr. Garth and asks for a small loan. Mr. Garth agrees.

Fred's father already owes money for Fred's university, even though Fred failed to finish his exams. Rather than prolong his "little episode of […] alleged borrowing" (331), Fred decides to sell his horse. He goes to the "Houndsley horse-fair” (353) with Mr. Bambridge (one of his debtors) and Mr. Horrock. The two men are known for their disreputable behavior. They convince Fred to swap his horse and £30 for another horse, believing that Fred can "make money" (338) by selling the new horse at a profit.