Moving home? Stay financially safe and don’t use a loan shark

Shark infested waters

Brighton tenants living in private rented accommodation are being targeted as part of a campaign in July by the Illegal Money Lending Team. These tenants might not be aware of support that is available to them if they are struggling to make ends meet. Quite often, the council, charities and local Credit Unions can provide bonds or deposits, but few people realise this and get into debt to move home and start their new tenancy on a back-foot. The team is advising never to use a loan shark for rent or a deposit, and fear that this is currently a hidden and unreported problem. Loan sharks will typically appear friendly at first, but their behaviour can quickly change.

Some resort 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.

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 are most at risk, and showing them that there is support available.

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. We understand that loan sharks lend to those in private, social and council tenancies and indeed to home owners also. 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 or twitter: @loansharknews

To report a loan shark, call the 24/7 confidential hotline on 0300 555 2222, text ‘loan shark’
plus your message to 60003 or email: reportaloanshark@stoploansharks.gov.uk