Warning over festive loan shark threat
A WARNING has been issued about loan sharks targeting cash-strapped families in the run-up to Christmas.
Trading Standards Scotland and city cops say the crooks are continuing to wreak havoc on the city’s most deprived communities.
Crime Reporter CASH-STRAPPED Glaswegians have been warned to avoid using loan sharks who are preying on vulnerable city residents in the run-up to Christmas.
Trading Standards Scotland and city cops are working closer to wipe out the unauthorised lenders who are loaning money – and issuing threats when borrowers don’t pay up.
The problem is city wide and it is hoped the new approach between the specialist Trading Standards’ Scottish Illegal Money Lending Unit and Police Scotland will help identify those responsible.
Fiona Richardson, Chief Officer for Trading Standards Scotland, said: “We have developed a partnership with Police Scotland to trial a new approach to investigate this.
“We will liaise with the police divisions in the city and work with officers to generate more intelligence about the scale and scope of the problem within local Glasgow communities.”
Unauthorised lender are those who lend money to people without the valid credit authorisation from the Financial Conduct Authority. The Scottish Illegal Money Lending Unit has been investigating the city problem since 2004 and have a back catalogue of successful criminal prosecutions.
But some loan sharks are still slipping through the net and continue to wreak havoc on some of Glasgow’s most deprived communities.
Evidence collected by the unit has revealed that some of their methods include intimidation and sexual favours from the borrower to the lender.
Fiona said: “The lending is community based and done on the basis of referrals from friends. These unauthorised lenders are lending money and charging interest. When people get into difficulties repaying, there are threats of violence, extortion and other unsavoury methods.”
She added: “Our past intelligence tells us is that there is a regular cycle to the lending. Christmas is obviously a time when people are strapped for cash and more likely to borrow, and they might not go to the best sources for credit.
“They get the money for Christmas gifts and then come February or March, they start to have difficulty making their repayments.
“That is when the problem starts to manifest itself, when someone gets pushed a bit too hard, they come to the police or ourselves for help.”
People in financial difficulty and looking to borrow money are urged to seek advice from authorised lenders such as the city’s credit unions.
People who have borrowed money from unauthorised lender and are worried about repayments can contact Trading Standards Scotland for advice.
Fiona said: “With authorised lenders, you have something in writing and you know how much borrowing has cost you. If you get into difficulty you are covered by all of the protections of the Consumer Credit Act.”
She added: “With a loan shark you have nothing in writing and you don’t know how much you owe until they tell you that you are clear.
“They may hold your Post Office benefit card as security against your loan.”