Social media loan sharks cost city £12m a year

Council bosses are warning people in Sunderland not to fall victim to ‘social media’ loan sharks.

Sunderland City Council estimated that £12m leaks out of the city’s economy every year through illegal lenders who are using social networking sites like Facebook, Instagram and Snapchat to find their victims.

Now, a campaign launched by the England Illegal Money Lending Team (IMLT) called #SharkFreeSurfing aims to tackle illegal money lending.

Tony Quigley, head of the England Illegal Money Lending Team, said: “Loan sharks are using online platforms to advertise their predatory lending activities and target potential victims.

“I urge people to remain vigilant when online. If you spot a suspicious loan advert on social media, report it to us.

"I f you n e e d to b o r row m o n e y, a l ways c h e c k t h e lender is authorised by the Financial Conduct Authority and contact your local credit union about ethical financial products and services.”

Sunderland City Council provides support for those who feel they need advice or help with their finances and has partnered with Moneywise Credit Union to offer Sunderland residents a range of loans and interest rates.

Cllr Paul Stewart, deputy leader of Sunderland City Council, said: “These loan sharks are criminals who lure people in with seemingly attractive loan offers. Anyone who is struggling with their finances should get in touch and see what support we can offer them.”

The council provides help and advice at www.sunderland.gov.uk/article/17326/ Financial-support-and-money-advice