- over £5.5 million will be spent to fund the fight
against loan sharks, helping to investigate and
prosecute illegal lenders, and support their victims
- £100,000 of money already seized from loan sharks
will also be spent to encourage people in England at
risk of being targeted by loan sharks to join a credit
union, helping them to access a safer form of finance
and get their lives back on track
- and for the first time in Northern Ireland a new
education project will be created to raise awareness of
the dangers of loan sharks and to support vulnerable
communities
, Economic Secretary to
the Treasury said:
These nasty lenders are nothing more than lowlife
crooks taking hard-earned cash from the pockets of
the most vulnerable. Over 300,000 people are in debt
to illegal money lenders in the Britain and they need
to know that we’re on their side. That’s why we’re
taking the fight to the loan sharks and spending more
than ever to support their victims.
In total, £5.67 million of funding will be provided to
Britain’s Illegal Money Lending Teams (IMLT) and bodies
in Northern Ireland to tackle illegal lending - a 16%
increase compared to the previous year. The money will
be used to investigate and prosecute illegal lenders,
and to support those who have been the victim of a loan
shark.
Since the Illegal Money Lending Team was established in
England in 2004, they’ve made over 380 prosecutions,
leading to 328 years’ worth of sentences, and have
written off over £73 million of illegal debt, helping
over 28,000 people to escape the jaws of the loan
sharks. Similar teams operate in Scotland and Wales.
In Northern Ireland, the Consumer Council will lead its
first ever education and awareness campaign to help
prevent the most vulnerable from being bitten by loan
sharks, and the Police Service of Northern Ireland
(PSNI) will get funding for a specialised officer who
will lead on illegal lending within the Paramilitary
Crime Task Force.
Tony Quigley, Head of the England Illegal Money Lending
Team, said:
Loan sharks are a blight on society and prey on
vulnerable people who struggle to make ends meet.
These criminals use callous methods to enforce
repayment and victims are often subjected to threats,
intimidation and violence. We will not tolerate this
sort of criminal activity in our country and loan
sharks who are caught flouting the law will be
pursued and prosecuted.
It is important for people to realise that
alternatives to borrowing from loan sharks are
available if you are in financial difficulty. Loan
sharks are never the answer and we strongly support
credit unions who can provide a safe and legal
alternative. If you have been affected by illegal
money lending, please call our confidential hotline
on 0300 555 2222.
