In the run up to Christmas, say No to Loan Sharks
You may be feeling increased financial pressure over the Christmas period while trying to manage increased spending with paying your rent bills, food and fuel.
Statistics have shown that nearly 1 in 10 people turn to loan sharks over the Christmas period – but this can lead to a cycle of debt and potentially threats of violence if payments can’t be met.
We don’t want to see any of our residents in this situation. Loan sharks are dangerous because victims often have to pay back twice of what theyve borrowed and are subject to a range of exploitative tactics.
There has been a significant uptick in illegal lenders operating online – especially on social media platforms – but there is help available!
The England Illegal Money Lending Team (IMLT) is a support agency that investigates and prosecutes illegal money lenders whilst assisting victims who have borrowed money from a loan shark.
Since 2004, the IMLT has supported over 32,000 people and written off a massive £91.3 million worth of illegal debt.
Tony Quigley, Head of the IMLT has expressed that “At a time when families are under extreme cost pressures with mounting living costs, we are deeply concerned that those who are already struggling to make ends meet could be targeted by these predatory lenders.
Our campaign aims to break this cycle by helping people understand the risks of loan sharks, what they can do if they feel threatened and where they can turn for help and support.”
At Regenda Homes, we strongly encourage anyone with financial worries who are thinking about borrowing money to reach out to our Income Team who can provide expert tailored advice and may be able to access additional benefits for you.
Stay safe – follow these tips to protect yourself and loved ones from loan sharks:
Lenders are not your friends – Whilst borrowing from an illegal money lender may seem tempting if you’re struggling to make ends meet and need cash fast, it’s important to remember debt can quickly accelerate. There are other options available – and if you must take out a loan – research thoroughly beforehand.
Don’t share your details – Unless it is a trusted source, you should never share details relating to credit cards, your online accounts or share copies of your personal documents. This information is valuable, so make sure you protect it from criminals who can use it as a future intimidation tool.
Check that your lender is genuine - Loan sharks operate illegally without the correct permission from the Financial Conduct Authority (FCA). Do your research first and check the firm or person you're dealing with is listed on the Financial Services Register.
Seek alternatives - Credit unions are a lifeline for many people, with their services helping members to save regularly, borrow responsibly and keep track of their finances. Ethical, local, not-for-profit alternatives can reinvest any surpluses into serving vulnerable customers – these can be found on https://www.findingfinance.org.uk/
Seek help - If you're worried about a friend or family member, or if you need help yourself, Stop Loan Sharks can offer confidential advice and support. Their Live Chat is available on the website between 9am and 5pm, Monday to Friday – or they can be contacted via a 24/7 helpline on 0300 555 2222. You can also visit: stoploansharks.co.uk
If you're worried about your finances or are considering using a doorstep lender or loan shark, speak to us first on 0344 736 0066.