Crackdown on loan sharks who bring misery launched

The clampdown has been launched by North Yorkshire County Council’s trading standards officers, in partnership with the England Illegal Money Lending Team and is aimed at loan sharks who cash in on Christmas and cause misery for people who find themselves trapped into paying over the odds for loans they cannot afford.

The campaign is designed to encourage people to celebrate the season without turning to an illegal money lender.

The North Yorkshire campaign was launched at an event in Selby, attended by representatives of organisations such as Citizens Advice Bureaux and community groups. The event stressed how a small loan to tide people over for Christmas, could end up costing them well into the New Year and beyond.

County Councillor Chris Metcalfe, the council’s executive 
member for trading standards, said: “Loan sharks rarely offer paperwork and are unclear on the terms of the loan, so borrowers are completely in the dark as to how much they are actually paying.

“Extra amounts and interest payments are added completely at random, so the debt spirals to be never-ending,” the councillor added.

Those behind the campaign say some lenders will resort to threats, violence and other extreme methods to enforce repayment. Nationally, the England Illegal Money Lending Team have investigated some of the most threatening and violent loan sharks and prosecuted them through the courts - including loan sharks who have threatened to harm victim’s families and pets, throw acid into people’s faces or burn down their homes.

They have also seen cases were violence has been used, including a victim who was kidnapped and attacked with a machete and a female victim who was raped.

Tony Quigley, Head of the England Illegal Money Lending Team, said: “No matter how much you are struggling financially, loan sharks are not the answer.”

To report a loan shark call the confidential hotline 0300 555 2222 or people can send an email to: [email protected]