Working in partnership with the IMLT to combat Loan Sharks across the Partnership will result in greater financial autonomy, increased health and wellbeing and improved social cohesion among residents.
An illegal money lender or Loan Shark as they are commonly referred to, is someone who lends money as a course of trade or business without having the authorisation from the Financial Conduct Authority (FCA) to do so. Those that perpetrate these crimes can include a friend of a friend, a neighbour, work colleague or someone who is part of an organised crime group.
There is generally no contract to sign, no proof of income required from the borrower and no receipts given for payment. Loan Sharks will lend to anyone, including children and take cash, goods or ‘in kind’ payments to repay the loan. New borrowers are found via ‘word of mouth’, a Loan Shark rarely advertises their business.
A Loan Shark will often present as friendly at the point of borrowing and convince the borrower they are doing them a favour. The money being loaned may start out as a small amount, but soon rises. Unfortunately, when the borrower misses a payment, increased penalty charges, threats, intimidation, blackmail, and violence generally occur.
If you have, or someone you know informs you that they have borrowed money from a friend, ask yourself or them the following questions:
• Is the friend lending to anyone else?
• Was it a cash loan?
• How are payments made?
• Do you have any paperwork for the loan?
• Does the lender take you to the cash point to withdraw payment?
• Does the friend come round to the house to collect payment?
• Is the friend charging interest?
• Has the friend threatened you if you have been unable to pay?
• Has the friend taken your bank card, benefit card, passport, watch or other valuables from you?
If the answer is yes to any of these, it is likely that the money is being borrowed from an illegal money lender.
Confidential help and support can be sought from the England Illegal Money Lending Team by:
Telephoning: 0300 555 2222 (available 24/7)
Emailing: reportloanshark@stoploansharks.gov.uk
Live chat at www.stoploansharks.co.uk (9am-5pm, Mon-Fri).
Councillor Iskandar Jefferies, Chairman of the Joint Public Protection Committee said:” The PPP have a dedicated Fraud and Scams team who I am extremely proud to see have had their efforts recognised by England’s Illegal Money Lending Team through the awarding of Parter Status. With the cost of living crisis continuing to impact on finances, more people are having to borrow money to meet their basic financial demands such as housing, food, and utility bills. Loan Sharks prey on our most vulnerable in society, their actions of lending money are illegal and can cause both psychological and physical harm to their victims. The PPP, working in partnership with the IMLT, seek to eradicate these criminals, improving the wellbeing of our residents and improving our communities.”
“I urge any resident across the Partnership who is or suspects a relative or friend to be borrowing money illegally, to contact the England Illegal Money Lending Team. Those who currently find themselves in financial hardship, to contact their local Citizens Advice Service for confidential, free and impartial advice.”
Citizens Advice can be contacted by:
Telephone: 01635 516605 (local charges apply)
Freephone: 0808 2787994
Completing an online form: West Berkshire Citizens Advice online advice (citizensadvicewestberkshire.org.uk)
