With the festive season fast approaching, the Illegal Money Lending Team (IMLT) is urging families not to borrow from loan sharks to prevent small Christmas loans turning into huge repayments in the new year.
Research shows that Christmas is the second highest reason that people borrow money from loan sharks. As a result of the pandemic, the £20 cut to Universal Credit and the rise in energy prices, loan sharks will use this as an opportunity to take advantage of people and mislead them into thinking that borrowing from a loan shark is the only solution.
Spot loan sharks this festive season
If you can answer yes to one or more of the following questions, you might be borrowing from a loan shark:
- Did they offer you a cash loan?
- Did they not give you paperwork?
- Did they add huge amounts of interest or APR to your loan?
- Have they threatened you?
- Are you scared of people finding out?
- Have they taken your bank card, benefit card, passport, watch or other valuables from you?
Stop Loan Sharks investigate, prosecute and put loan sharks in prison. They are the only organisation in England who have the power to stop loan sharks and illegal money lenders. You can safely report a loan shark to them on 0300 555 2222.
If you are in debt or are considering borrowing from a loan shark, StepChange offer expert advice to help you deal with your debts and get the support you need. To visit their website, please click here.
If you are struggling, you can also call our team on 0330 303 2222. If you would like to speak with a member of our Welfare Benefits team, please press 6 when prompted.