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BEAT THE LOAN SHARKS – BITE BACK!

Friday 05 February 2010Bite Back!

As the credit crunch hits harder, money problems are affecting more and more of us. Who do you turn to when the rents overdue, the gas bills higher than you expected, or the washing machine breaks down? The Wales Illegal Money Lending Unit (IMLU) is warning Rhydyfelin residents not to make the mistake of turning to illegal lenders.

IMLU was set up by the government in 2007 to investigate and prosecute loan sharks and operates as part of Trading Standards, since loan sharks operate without a consumer credit licence.

Loan sharks prey on people who are vulnerable  whether because of long term poverty or debt, or difficulties in their lives such as addiction or health problems. Like doorstep lenders, illegal lenders charge extortionate interest rates - IMLU say that 150,000% APR is not unheard of! They may also use threats or violence to ensure that their victims keep paying.

Sharks dont give you paperwork explaining the terms of the loan, and you have to keep paying them back until they decide you can stop. They may appear friendly when they offer the loan, and when you pay - its when you cant pay that you see the other side of them, explains Steve Tooby, IMLU manager.

Over recent months, IMLU has uncovered shocking examples of illegal lending in Wales:

Two brothers were imprisoned, for two years and nineteen months respectively, at Cardiff Crown Court for illegal money lending and money laundering. Charges of false imprisonment and blackmail remain on file. Their victims had to sell their home, and most of their possessions to pay the loan sharks.

A victim became so desperate, as her finances were hollowed out by the loan shark each week, that she asked her social worker to take her five children into care, as she could not feed them.

If you have information about suspected loan shark activity, you can phone IMLU on the 24 hour hotline: 0300 123 3311 or 0300 555 2222. You can phone anonymously if you want. IMLU has specialist client liaison officers, who will advise on debt and other problems.