Bath residents are being urged to make sure their Christmas is not ruined by illegal money lenders.
- © OFT
The Council has teamed up with the national Illegal Money Lending Team to clamp down on loan sharks and provide advice and support to help prevent victims struggling to repay their illegal loan well into the New Year and beyond.
Figures from the national Illegal Money Lending Team show that an estimated 310,000 households across the country turned to an illegal money lender over the last year, with 20 per cent of victims originally taking out the loan to pay for Christmas.
Councillor David Dixon (Lib-Dem, Oldfield), Cabinet Member for Neighbourhoods, said: “At this time of year many people find it hard to make ends meet, especially with the pressures of buying all those Christmas ‘must-haves’. Turning to an illegal money lender for help might seem like the only option but the consequences can be horrendous. Loan sharks operate illegally as their debts are not enforceable by law, so many of them resort to bully tactics such as violence, threats and intimidation.
“One of Bath & North East Somerset Council’s priorities is building communities where people feel safe and secure, which is why we’re working with the Illegal Money Lending Team to catch loan sharks and help prevent people suffering over Christmas and beyond.
“If anyone is a victim of illegal money lending we can offer free and confidential advice and support to help them out of their financial misery.”
Members of the public are warned that illegal money lenders:
- Rarely offer paperwork, keeping victims in the dark as to how much they owe
- Often add exorbitant extra charges and interest rates (the highest seen is a crippling 131,000% APR)
- Often take items as security on the loans – including passports, driving licences or even bank or post office cards with the PIN to draw directly from the borrower’s account, leaving them with little or nothing to get by on
- Often resort to extreme methods such as threats, intimidation and violence to enforce repayment.
The Illegal Money Lending Team will prosecute unlicensed lenders in all parts of England. Up to 30 specialist investigators can be deployed to an area, once an illegal lender is identified.
Tony Quigley, Head of the England Illegal Money Lending Team, said: “This is a despicable crime that will not be tolerated. As Christmas approaches we would like to make especially clear that no matter how desperate you are these criminals should always be avoided as they will make your life a misery. There are alternatives available such as contacting your local credit union.
“If you believe you or someone you know is involved with a loan shark please call our team in confidence on 0300 555 2222. Our lines are open 24/7 even throughout the festive period. If we can stop just one person from turning to a loan shark this Christmas we will have made a difference.”
Information about illegal money lenders can also be passed on by email to [email protected] or by sending a text to 60003 – starting your message with the words “loan shark”.
