LOAN SHARKS TARGET XMAS

Needy warned of cash misery

HARD-up families who are desperate for Christmas cash have been warned not to take pay-day loans.

Many are being tempted to borrow fast cash to cope with their festive bills.

But they are then hit with huge interest rates, leaving them financially crippled.

Tony Quigley, head of England Illegal Money Lending Team, said: “Illegal lenders operate in the ghost economy and disregard consumer protections in this highly regulated industry.

“They cause misery to those who choose to use them.

“This time of year is particularly profitable for these unscrupulous lenders as they prey on people trying to cope with the pressures of Christmas.”

The loan-shark investigator added: “What may seem like a small loan to tide someone over escalates out of control.”

One victim, a mum-of-five, said she twice tried to commit suicide after her initial loan of £50 turned into a £35,000 debt.

The 44-year-old, named only as Becky, first borrowed money for school uniforms but the repayments rocketed by £100 a week.

If she failed to pay, the shark sent texts threatening “the big man coming”.

The pressure was so great that Becky, who did not have a bank account or a credit rating, took overdoses. She said: “It seemed easy money but I didn’t realise the dangers.

“It got so bad I had to use foodbanks. On benefits day they would be waiting at the Post Office for me.

“I was handing over the child benefit a minute after I’d got it. I’d then have to go back to them for more.”

Becky’s case was passed to the Birmingham-based England Illegal Money Lending Team.

The 50-strong Governmentfunded unit tackles loan sharks.

Since 2004, it has prosecuted nearly 400 for illegal money lending and related offences such as blackmail, kidnap, rape, wounding and assault.

They have also written off

£75million-worth of illegal debt and helped 30,000 victims escape the clutches of sharks.

Becky is one of an estimated

300,000 UK households believed to be using unregulated and intimidating doorstep lenders.

Her family has since been rehoused in a different area.

Mr Quigley added: “I urge anyone who is struggling to manage financially to look at alternatives such as credit unions, and would also advise speaking to Citizens’ Advice.

“Illegal lenders prey on people’s vulnerabilities and erode quality of life.

“We want to reassure victims they have not broken the law, and help and support is available.”