Stop Loan Sharks
The England Illegal Money
Lending Team, which works in partnership with local Trading
Standards departments around the country to tackle loan sharks, is
launching an awareness campaign to reach private rented sector
tenants throughout July 2014.
While anyone can be a
victim of a loan shark, this month's campaign will focus on helping
those who live in private rented accommodation. These tenants might
not be aware of support that is available to them from local
authorities and charities if they are struggling to make ends meet.
Quite often councils, agencies and Credit Unions can provide bonds
or deposits but few people realise this and can get into debt to
move home and start their new tenancy on a back-foot. The team is
advising people never to use a loan shark for rent or a deposit,
and fear that this is a currently hidden and under-reported
problem.
Research shows that loan
sharks will often target people who are on low incomes, as well as
those who may struggle to obtain credit from legitimate sources.
The campaign is aimed at reaching out to those who may be unaware
of the support available.
Throughout July, the team
will work locally with key partners that support those going into
or living in the private rented sector to make them aware of the
signs of illegal lending, as well as trying to reach residents
directly with targeted leaflet drops and awareness activities. They
will also be working with private landlords to help them provide
support and advice to any tenants who have got into financial
difficulty with loan sharks prior to taking on a tenancy.
Illegal money lending is
an issue all across the country with an estimated 310,000
individuals affected.
Loan sharks will typically
appear friendly at first but their behaviour can quickly change
with some resorting to threats, violence and intimidation to
enforce their debts. They operate illegally, without the correct
permissions from the Financial Conduct Authority and rarely give
paperwork, keeping borrowers in the dark as to how much they are
paying back. Some will even take items such as passports as
security or even bank cards with the PIN in order to withdraw
directly from borrowers' accounts.
Lord Toby Harris, Chair of
the National Trading Standards Board, said: "The process of moving
home can be expensive and loan sharks take advantage of this,
striking just when people feel under real financial pressure. It is
crucial that people know that, even if they're renting privately,
there is help available to them if they get into financial
difficulty. Loan sharks are illegal, predatory and should never be
considered as an option.
National Trading Standards
are committed to tackling loan sharks and we look forward to making
a real difference for private tenants across the country over the
next month. If anyone suspects an individual of loan sharking or
has been a victim themselves then I would urge them to call the
hotline or email [email protected]."
Chris Hancock, Head of
Housing at Crisis, said: "It's great to see the Illegal Money
Lending Unit focus on the private rented sector. We've worked with
local housing projects over the last three years to help 8,000
people into decent homes, so we know that with proper support
tenants can make a lasting home - without the need to resort to
loan sharks."
Tony Quigley Head of the
England Illegal Money Lending Team said "During the month our aim
as a national team is to make a difference locally. Whether a
community is urban, inner city or rural we understand that loan
sharks lend to those in private, social and council tenancies and
indeed home owners. Our aim is to tackle any current illegal money
lending issues whilst sending a preventative message to all - loan
sharks are not a safe or cheap way to borrow money, even if you're
doing so to move home.
We would urge anyone who
has been the victim of a loan shark, or knows of someone who has to
contact us in the strictest confidence on 0300 555 2222. Lines are
open 24/7 and callers can remain anonymous if they wish."
For updates on the
campaign visit www.facebook.com/stoploansharksproject
of twitter: @loansharknews
To report a loan
shark:
Call the 24/7 confidential hotline 0300 555 2222
Text 'loan shark + your message' to 60003
Email [email protected]
Private message us on www.facebook.com/stoploansharksproject