Retailers and shoppers urged to ‘Shop a Shark’ and report postcard ads for loans
A crackdown on loan sharks has been launched, in a bid to stamp out illegal lenders.
People are asked to report cards advertising loans if they are placed in a shop window or a community noticeboard.
Lenders will be investigated by the England Illegal Money Lending Team (IMLT).
If the firm is not registered with the Financial Conduct Authority (FCA), action will be taken.
The IMLT says that anyone who lends money and charges interest without authorisation from the FCA is acting illegally.
In many cases, these lenders do not comply with the strict rules that protect borrowers and they charge whatever interest they choose.
Sometimes they use threats, intimidation and violence to make sure repayments are made and can make life a misery for vulnerable borrowers, trapping them in a cycle of debt.
The IMLT, also known as Stop Loan Sharks, is a national organisation dedicated to investigating and prosecuting loan sharks and supporting borrowers.
Dave Benbow, head of the IMLT, said: “Illegal lenders will often pretend to be a friendly face at first, offering a favour to someone who needs to borrow money, often a small amount, at short notice.
“On the surface, these postcard ads might appear to be someone offering a service to the local community but, in reality, the person behind the ad may be a vicious predator, targeting the most vulnerable people in that community.”
He said that people sometimes need to borrow a small amount at short notice to meet everyday costs or unexpected expenses.
“If they can’t access credit through mainstream channels like banks, they may feel their options are limited and this is where illegal lenders can strike,” he continued.
“A small ad in a shop window can be used as a way to reach those people, but with this new campaign, we are hoping it’s also a way that we can root out some of the illegal lenders who cause so much misery at the heart of communities.”
Mr Benbow said that retailers display adverts have done nothing wrong and can report such adverts.
“By working together, we can all help to make our communities that little bit safer,” he continued.
An alternative lending source could be a credit union, including the Boom Community Bank which operates from Worthing but serves Berkshire.
To find a credit union go to findyourcreditunion.co.uk
If anyone spots a suspicious ad, there is a new reporting form on the IMLT website where people can send details of an ad, anonymously if preferred.
The team can be contacted by calling the confidential hotline 0300 555 2222 or joining the live chat which is available on the website www.stoploansharks.co.uk from Monday to Friday 9am to 5pm.
To report a suspicious ad, go to http://www.stoploansharks.co.uk/report-a-loan-shark-advert
The IMLT was set up 20 years ago and since then has supported over 31,700 people, written off more than £91.3m worth of illegal debt and secured over 420 prosecutions for illegal money lending, leading to more than 600 years in jail.