Debt charity warns of rise in loan sharks due to reforms in welfare
LOAN SHARKS are continuing to target “petrified” victims in some of the most vulnerable communities, a Yorkshire-based debt charity has warned.
Welfare reforms and escalating personal debts are leaving vulnerable people at risk of falling prey to illegal money-lenders, according to Richard CampbellMarrin, the manager of Ebor Garden Advice Centre in Burmantofts, Leeds.
The service helps hundreds of people in the Leeds city region every year with debt and benefits advice.
Mr Campbell-Marrin said: “With loan sharks, the problem is not going away, it’s increasing. The latest problem we are finding with loan sharks is they are continuing to target deprived areas, particularly in communities where English is not the first language and people are vulnerable to being targeted.
“People pay extortionate interest rates of thousands of per cent and if the lender cannot get payment they will start to intimidate relatives. People are absolutely petrified. Personal debt is escalating and is being compounded by welfare reforms the benefits cap and bedroom tax.”
The England Illegal Money Lending Team – run by Birmingham Council Trading Standards department – was set up in 2004 and has been operating in Leeds area since 2007. Nationally, Illegal Money Lending Teams have secured more than 378 prosecutions for illegal money-lending and related activity, leading to nearly 325 years of custodial sentences. They have written off £71.9m of illegal debt and helped more than 26,500 people.
Tony Quigley, the team’s head of service, pledged to work with Leeds City Council and West Yorkshire Police to prevent loan sharks operating, and added: “Illegal money-lending is a despicable crime which is unfortunately happening amongst many communities across the country.”
He urged anyone who has been the victim of a loan shark to contact the Illegal Money Lending Team on 0300 555 2222 or at www.stoploansharks.uk.