The England Illegal Money Lending Team is working alongside Salford Credit Union to raise awareness of the dangers of borrowing from unlicensed money lenders, more commonly known as loan sharks.
The National Team, who investigate and prosecute illegal money lending offenders, are working locally in partnership with Salford City Council Trading Standards and Salford Credit Union to encourage people to say no to illegal money lenders and look at saving for the future.
Through a joint initiative, the Team will use proceeds of crime money, confiscated from convicted illegal money lenders to sponsor new credit union accounts.
The first fifty people to join Salford Credit Union during the promotional scheme and make three months’ worth of consecutive payments into their account before December 2016 will qualify for a savings boost of £25.00 just in time for Christmas.
Paul Whitehead, Chair of Salford Credit Union comments:
“Salford Credit Union is pleased to have this opportunity to work with the Illegal Money Lending team to help keep people out of the grip of loan sharks. We are a safer and legal alternative to loan sharks. We are also fully regulated and all savings are protected by the Financial Services Compensation Scheme. Saving regularly helps people get more control over their finances. If you save with the credit union you also get access to our low cost loans if you need to borrow. Because we are a local co-operative with no outside shareholders we can keep our costs down.
“For residents who are looking to save with a safer, and legal alternative to loan sharks, can visit the team at Salford Credit Union at Brotherton House (Public Branch), The Broadwalk, 1 Loganberry Avenue, Salford, M6 5UX.”
An estimated 310,000 households nationally are borrowing from illegal money lenders, many of whom charge exorbitant rates of interest to trap people into a spiral of debt. Many loan sharks will resort to bully tactics, such as violence, threats or intimidation to enforce repayment.
People are urged never to use unlicensed lenders who:
Refuse to tell the borrower how much they owe, how long they will be repaying for or the APR rate.
Do not give paperwork.
Add additional charges or increase the debt.
Take items such as passports, bank cards or driving licences as security.
Appear friendly at first, but resort to violent, threatening or extreme methods when payments are not met.
Salford City Mayor Paul Dennett comments:
“Loan sharks are parasites that prey on the most vulnerable in society and ruin lives by using fear and intimidation to trap people in a spiral of debt.
“This fantastic new scheme will see local people benefit from criminals ill-gotten gains and will help us to continue to promote the Salford Credit Union and its services to tackle poverty and the rising inequality gap.”
Tony Quigley, Head of the Illegal Money Lending Team comments:
“Illegal money lenders can have a horrific impact on our communities, and should never be used under any circumstances. We are cracking down on unlicensed lenders who make peoples lives a misery. It is important for people to realise that alternatives to borrowing from loan sharks are available if you are in financial difficulty. We are here to help if you have already taken out a loan from an illegal money lender. Please call our confidential hotline on 0300 555 2222, if you or someone you know is in this situation.”
