The Dangers of Loan Sharks
According to the Government’s Illegal Money Lending Team, an increasing number of people with debt problems are resorting to borrowing from highly dangerous unlicensed money lenders. These ‘Loan Sharks’ initially make it seem easy to borrow the money for a short term but if the debt persists the interest required makes it both increasingly difficult to pay the debt back and makes the original problem even worse than it was at the start.
Loan Shark Facts:
1. Money lenders must be licensed by the Office of Fair Trading - a Loan Shark is an illegal money-lender with no licence whatsoever.
2. They charge extremely high rates of ‘interest’ - but the amount that is demanded for ‘repayment’ isn’t the only danger.
3. They routinely use unlicensed debt collectors employing intimidation, threatening behaviour and/ or violence to ensure the outrageously high ‘repayments’ are collected.
4. Debt collectors have even taken people’s benefit books, bank books and passports to make sure their illegal demands for cash are met.
Due to the economic downturn, the number of households resorting to loan sharks is reported to have increased by an alarming 22% in the past 3 years. The Illegal Money Lending Team points out loan sharks typically operate without paperwork. But while no initial credit check might seem attractive to people struggling with debts, the reality is that loan sharks do not offer simple fast loans.
What Happens If You Can't Pay A Loan Shark
When loan shark victims are unable to meet a repayment demand, threats of violence towards themselves or their family often begin. Just some of the more recent high profile convictions for UK loan sharks make for distressing reading:
1. Cash demands accompanied by threats, violence and kidnap.
2. 2,437% interest accompanied by violence and blackmail.
3. 50% interest accompanied by intimidation, weapons and sexual assaults.
4. 8,000,000 % interest accompanied by intimidation.
5. Threats and intimidation towards young mothers - with operations conducted at the school gates.
Since the sums of money are ‘lent’ without paperwork, victims typically have no way to keep track of repayments. Courts have heard how loan sharks left victims in absolute poverty after they collected each ‘instalment’. Since it is totally illegal for them to lend money in the first place, the law says that consumers do not have to meet these repayments - but of course, loan sharks are relying on intimidation to collect their cash.
Consumers should never feel under pressure to borrow from a loan shark to try to ‘manage’ existing debt problems. Speak to the Debt Options team for free, confidential advice on the safe, legal debt options to allow people to end problem debts. Expert advice can protect consumers from the dangers of illegal money lenders - there are always alternative debt options.
Stop Debt Collectors - Specialist Services against Loan Sharking
Remember, it is not a crime to have borrowed money from a loan shark. Anyone who is concerned that they are affected can gain professional support to stop debt collectors harassing them:
• Call the Stop Loan Sharks hotline 24 hrs a day in confidence on 0300 555 222
• Text ‘Loan sharks’ and a message to 6003
• Email This e-mail address is being protected from spambots. You need JavaScript enabled to view it
• Visit the website http://stoploansharks.direct.gov.uk/index.html
?
Keep track of