Trafford residents struggling through the cost of living crisis are being urged not to be tempted by loan sharks as they count the cost of an expensive Christmas period.
The Council and its partners including the Stop Loan Sharks group want to prevent people from borrowing from illegal money lenders as the cost of living crisis continues to hit following the big Christmas spend.
People can often be targeted by loan sharks as they take advantage of those looking for a way out of their financial troubles. Loan sharks charge very high rates of interest and don't provide much paperwork to confirm the lending arrangements. In some cases, a loan shark could be a colleague or friend who offers to lend money but asks for repayments which are a lot more than the amount borrowed, and they could be lending money in this way to a lot of different people.
Loan sharks often take other illegal action to collect the money they've lent you, such as threatening violence or taking away your credit cards or valuables. In extreme cases, they've been known to force non-payers into prostitution and drug dealing.
Also, loan sharks are operating illegally and are not authorised by the Financial Conduct Authority (FCA). Those requiring help are urged not to accept loans from illegal lenders but to search the FCA Financial Services register to check if the lender is legal. They can also join a credit union as a safer alternative.
Cllr James Wright, Trafford Council’s Executive Member for Housing and Advice, said:
“Families will be struggling badly following the big Christmas spend, but loan sharks are not the answer and must be avoided at all costs.
“They prey on vulnerable people at times of crisis and offer sums of money that simply cannot be paid back. They target families who are struggling and make them feel that they can be the answer to their financial problems – they are not. Loan sharks and other illegal money lenders allow people to go into debt and then use threatening behaviour to get money. If you feel you are struggling and in need of help, please approach your local credit union rather than the local loan shark.”
If you think you have borrowed from a loan shark, you can contact the Illegal Money Lending Team’s 24/7 confidential hotline on 0300 555 2222 or visit Stop Loan Sharks online where there is a live chat facility. If you do share your personal details with the Illegal Money Lending Team and they are able to investigate a loan shark following your contact, your details will be kept confidential.
Also, the Money Advice Service is a free, independent service. Their website has lots of useful information about borrowing and managing your money.