Net Closes on Loan Sharks
A new year clampdown's underway to try and stop familes who're feeling the pinch after Christmas from turning to loan sharks.
A number of raids have been carried out in the last month across Greater Manchester to catch illegal money lenders.
Support teams are also handing out leaflets and advice to communities affected.
A campaign is being launched to encourage people to speak out against loan sharks. The campaign follows recent arrests in the area and is being paid for using proceeds of crime money confiscated from convicted loan sharks. Stockport Metropolitan Borough Council are teaming up with the England Illegal Money Lending Team, Brinnington Arts Group, Stockport Homes and Players 4 People Theatre Company to run a series of events that aim to warn people of the dangers of loan sharks and inform anyone who is in their grasp that help is available.
Throughout January a badge competition will run with local schools. The winning badge will be produced and there are prizes for the schools that get involved including saver accounts opened with the credit union. Brinnington Arts Group will be running weekly mosaic art classes for children in the library, and Players 4 People Theatre Company will perform a play in local primary schools. There will be banners, posters and leaflets displayed throughout the area and residents will be encouraged to sign a pledge stating that loan sharks are not welcome on the estate. The Illegal Money Lending Team will offer training to staff and residents so they are aware of the warning signs that someone may be in the grasp of a loan shark and are confident in describing and promoting the help that is available.
Loan sharks operate illegally, without the correct permissions from the Financial Conduct Authority. These criminals usually appear friendly at first but quickly trap their borrowers into spiralling debt. Many lenders will resort to the most extreme and callous methods to enforce repayment including threats, violence and intimidation.
Paperwork is rarely offered so victims are often in the dark as to how much they are actually paying. Exorbitant extra amounts and interest are added at random- the highest interest seen charged by a loan shark was equivalent to 131,000% APR. In some cases the loan sharks have been known to take items as security including passports, driving licences or even bank or post office cards with the PIN in order to withdraw directly from borrowers’ accounts.
An estimated 310,000 households across the country are in debt to a loan shark.
The England Illegal Money Lending Team has so far prosecuted more than 320 loan sharks across the country. Many of these criminals have extorted cash from communities, leaving their victims with little or nothing to get by on and often living in fear.
Councillor Martin Candler, Stockport Council’s Executive Member for Supporting Places, said: “Illegal money lenders can cause misery to some of the most vulnerable people in our community. Stockport Council will continue to work in partnership with other agencies to tackle loan sharks and to make residents aware of alternative money lending opportunities that may be available”.
Tony Quigley, Head of the England Illegal Money Lending Team, said “Loan sharks are a scourge on our communities, making life a misery for their victims. We would always urge victims of loan sharks to seek help by contacting us in confidence on 0300 555 2222”
To report a loan shark:
Call the 24/7 confidential hotline 0300 555 2222 E-mail: reportaloanshark@stoploansharks.gov.uk Private message us on: