Warning that loan sharks are active in Staffordshire and Cheshire
Citizens Advice are urging people not to go near them
Last updated 7th Nov 2024
With just 7 weeks until Christmas, people across Staffordshire and Cheshire are being warned not to fall into the dangerous hands of loan sharks.
Latest figures suggest 12-million people in the UK are living "on the edge" of being in debt, with even more generally struggling to prevent it.
The Money and Pensions Service says over eight-million households sought advice relating to debt last year.
Craig Browne is the Chief Executive of Citizens Advice in Staffordshire and Stoke-on-Trent. He says the pattern is the same locally.
"Increasingly people are coming to us with debt being a major concern." said Craig.
"Last year we had about 22,000 people approached us and collectively the 22,000 had just over £30-million worth of debt. Increasingly people are coming to us with debt as a major concern.
"There are loan sharks out there and they might initially seem like an attractive option to people. What it ends up doing is saddling them with long term debt and higher repayments than they can afford."
What is a loan shark
According to the Citizens Advice website, a money lender has to be authorised by the Financial Conduct Authority (FCA) to lend money legally. Money lenders who aren’t authorised by the FCA are breaking the law. They are known as loan sharks.
Loan sharks often work from home, charge very high rates of interest and don't give you much paperwork to confirm the arrangements they've made with you. A loan shark usually has lots of customers and lends money like a business, but their lending is illegal.
Loan sharks often take other illegal action to collect the money they've lent you, such as threatening violence or taking away your credit cards or valuables. In extreme cases, they've been known to force non-payers into prostitution and drug dealing.
Craig added: "Loan sharks can use social media to target vulnerable people and they can be people and appear like you and me."
Getting help
If you're owing money to what you believe to be a loan shark, it's advised you contact the Illegal Money Lending Team.
Tel: 0300 555 2222
Email: reportaloanshark@stoploansharks.gov.uk
Website: www.stoploansharks.co.uk
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