‘Illegal Money Lending’
The recent spat between the Archbishop of Canterbury and Wonga has put into sharp focus the proliferation of money lending companies which have sprung up over recent years. There are, however, others that do not advertise so heavily; ‘business’ often conducted by word of mouth only. I refer to unregulated, illegal money lenders – aka ‘loan sharks’.
Offering money with little or no paperwork to those who usually have poor credit opportunities, loan sharks trap their victims into paying back many times the original sum – the highest calculated APR being a staggering 131,000%! Should payments falter, the once cosy relationship often turns to intimidation, threats and violence with passports, driving licences or bank cards commonly taken as security or to withdraw funds directly from victims’ accounts. A worsening situation often leads to ramping up pressure on the victim by carrying out offences involving drugs, burglary, kidnap and even rape. As loan sharks operate illegally, such criminal methods of coercion are all that can be resorted to in order to enforce payments.
Such activities clearly have a negative effect upon local crime levels where loan sharks operate and a spike in crime is often related to their existence.
The important point to note, however, is that if loans are provided illegally, they are not enforceable in law. The Illegal Money Lending Team (IMLT) exists to help those caught in this financial dilemma and can, and does, actively seek and successfully prosecute loan sharks using information provided by the public.
Loan sharks are not thought to be a problem in NE Lincs currently but increasing deprivation levels provide perfect operating conditions.
To stop them, contact the IMLT in confidence on 0300 555 2222.
So take divine inspiration and don’t get caught with a loan shark…it will cost you an arm and a leg.