Police in Peterborough say more people could be in debt to loan sharks due to the cost of living crisis
Over one million people are estimated to be in debt to illegal money lenders in England
Police in Peterborough say the cost of living crisis could mean a rise of people in debt to loan sharks.
With 1.08 million people estimated to be in debt to illegal money lenders in England, police have teamed up with Stop Loan Sharks, to target these criminals operating in the area.
90% of all legal loans are currently being refused
A loan shark, or illegal money lender, is someone who lends money without authorisation from the Financial Conduct Authority.
They are not bound by rules that exist to protect borrowers.
Some signs of an illegal lender include: offering to lend money as a favour; being given no paperwork or details about the loan; being told to make repayments that add up to much more than you initially borrowed; and being intimidated or threatened if you struggle to make repayments.
Neighbourhood Police Inspector in Peterborough, Lyndsay Mylchreest, said:
"At the moment we know that we have significant challenges in relation to the cost of living, and 90% of all legal loans are currently being refused."
"We're concerned where people are obtaining the additional funds that they need to feed their family and heat their homes."
"People who are the most vulnerable in society can end up having to repay vast amounts of money far greater than they originally borrowed and also be intimidated and have some really awful tactics used against them where property might be taken or held until payments are made."
"It's an issue that can spiral."
"We've seen there are some huge figures that are having to be repaid far beyond the means of the individuals that are taking out these loans, and we really then struggle to understand and support these people."
It's an issue that can spiral
In 2023, Stop Loan Sharks supported almost 800 people who had borrowed from illegal lenders.
Of those, 17% borrowed more than 10 times and 14% did not remember exactly how many times they’d borrowed.
This shows how people can end up in a cycle of borrowing again and again to repay what they owe.
Dave Benbow, IMLT acting head of service, said:
'We will not tolerate illegal lending, and we will continue to do everything we can to stop these lenders.'
'Our ultimate aim is to make communities safer and protect the most vulnerable.'
'We realise it can be difficult for people who have borrowed to come forward, but we want to reassure anyone in that position that we are here to help and not to judge.'
Police say anyone who has been affected by illegal money lending should call the Stop Loan Sharks 24/7 confidential helpline on 0300 555 2222 or access support online at www.stoploansharks.co.uk.