Atherstone warned to avoid loan sharks during Covid-19 pandemic

EVEN FRIENDLY AND HELPFUL LENDERS MAY ASK FOR UNREALISTIC AND UNAFFORDABLE PAYMENTS IN RETURN

'THEY PREY ON THE MOST VULNERABLE AND WILL INTIMIDATE, MANIPULATE AND TRAP PEOPLE INTO A DEBT SPIRAL'

RESIDENTS across Atherstone and North Warwickshire struggling to make ends meet during the Covid-19 pandemic are being urged not to turn to unscrupulous loan sharks.

Concerns are mounting that locals finding themselves in a vulnerable position feel they have nowhere else to turn.

Warwickshire Family Information Service is supporting a campaign by the England Illegal Money Lending Team as part of awareness drive with more people under increasing financial pressure due to the impact of coronavirus.

The IMLT, which investigates and prosecutes loan sharks, has launched a live website chat to give victims another safe way to seek advice and support in addition to their 24-hour telephone helpline.

And the All Party Parliamentary Group on Alternative Lending, which has already warned the financial difficulties the crisis has caused for many households could prompt a spike in illegal lending, has called for offenders who take advantage of cash-strapped customers to receive longer jail terms and harsher penalties.

IMLT head Tony Quigley said: "Loan sharks prey on the most vulnerable and will intimidate, manipulate and trap people into a debt spiral.

"I urge residents to remain vigilant and watch out for illegal money lenders trying to take advantage during these difficult times.

"If you are struggling for financial help then credit unions offer a safe and easy place to turn for advice and support.

"You can also get help and discuss your options with organisations like Citizens Advice, Step Change and the Money Advice Service."

"Loan sharks are a scourge on our communities, taking advantage of people in desperate situations and trapping them in a cycle of debt and misery."

Over the last two years more than £230,000 has been allocated to local community projects across England from money retrieved from loan sharks. Mr Quigley says it is only right that profits generated from illegal money lending are reinvested into initiatives that help prevent crime and protect their communities."

The IMLT is keen to support innovative crime prevention initiatives that leave a lasting legacy for their communities as well as cracking down on loan sharks across the country and stripping them of their ill-gotten gains under the Proceeds of Crime Act legislation.

Some tips on protecting yourself from loan sharks:

• Do not accept cash loans, even if the lender seems friendly or helpful as they may ask for unrealistic and unaffordable payments in return;

• Avoid loan sharks at all costs and consider other options if you need to borrow money. Credit unions offer ethical savings and loans to local communities. Find a credit union near you – www.creditu.co.uk; and

• To lend money lawfully you must be authorised by the Financial Conduct Authority. You can search the FCA Financial Services register to check if the lender is legal at register.fca.org.uk. If you have already borrowed money from someone who isn't FCA authorised, you haven't broken the law, they have. If you've been affected by a loan shark, or know of loan sharks operating in your area, contact the confidential helpline on 0300 555 2222. You can also submit a report online here.