Bite back at loan sharks

A new dedicated advice site has been launched to support Scots who are struggling to deal with loan sharks.

The Scottish Illegal Money Lending Unit (SIMLU) has also expanded its network of organisations operating in communities which help residents to safely report illegal loan shark activity.

Throughout the pandemic, many illegal lenders have moved online, using social media adverts and messages to take advantage of those who are most vulnerable.

Although loans from these online lenders may be seen as providing a quick solution for those in crisis situations, the lenders may not be authorised by the Financial Conduct Authority and could charge huge interest rates.

On average, loans from illegal lenders end up costing three times as much as a legal loan.

The SIMLU’S new website – stopillegallending.co.uk – has been established to provide dedicated advice and support.

Fiona Richardson, chief officer at Trading Standards Scotland, said: “We will work together to promote the message that you should not use loan sharks, but also to make sure that, where somebody has ended up using an illegal money lender, they know where to go to receive the appropriate help and assistance.

“In a period of great financial uncertainty, it is important that we take all the steps we can to stop people from borrowing from loan sharks and getting trapped in a cycle of debt and intimidation.”

Molly Mccall, outreach worker with Grampian Regional Equality Council, added: “I’m very proud to be able to continue working in partnership with the Scottish Illegal Money Lending Unit on their mission to stop loan sharks.”