People reminded about dangers of using loan sharks

People in Staffordshire are being reminded of the risks of turning to illegal money lenders and loan sharks in the run up to Christmas.

Staffordshire County Council’s Trading Standards officers are supporting the Illegal Money Lending team (IMLT) campaign over the festive season, to tackle the growth in illegal lending. 

Loan sharks typically target vulnerable people seeking credit and trapping them into a cycle of debt, with incredibly high interest rates and threats of violence.

Research by the IMLT shows that nearly one in ten of those who borrowed money from loan sharks in 2022, did so to cover the costs of Christmas.  More than half of victims (52%) supported by the IMLT in the first half of 2022, had borrowed from a loan shark to pay for essentials such as food and fuel.

Victoria Wilson, Cabinet Member responsible for Trading Standards at Staffordshire County Council warned people that unscrupulous lenders could try to cash in on the festive period as households continue to deal with rising bills.

“With many families continuing to face extra financial pressures, it’s even more important that we continue to take a stand against loan sharks. These criminals are active all year round but do step up their activities during Christmas time.

“Loansharking is an awful crime that affects many of our communities.  They may seem friendly at first but borrowing from them can have serious consequences.  There are organisations that can provide access to affordable loans, such as credit unions, and I would urge anyone struggling financially to consider getting in touch with them.” 

Officers have offered the following advice:

• If struggling for money, remember loan sharks are not your friends.  Think very carefully before taking out a loan and consider other options.

• Make sure to protect your information from criminals.  Never send money, credit card details, online account information and personal documents to anyone you don’t know.

• Always check your lender is genuine.  Do your research first and check the firm or person you're dealing with is listed on the Financial Services Register.

Anyone worried about a friend or family member, who is being taken advantage of by a loan shark, should visit Stop Loan Sharks website or contact the confidential helpline on 0300 5552222.