News from Bolton at Home

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Don't get hooked in by loan sharks

If you’re on a low income and struggling to make ends meet, it can be tempting to use a doorstep lender who promises to give you the cash you need quickly, without any credit checks. But falling foul of these illegal money lenders can make your life a misery. Often, the interest they charge ends up spiralling out of control and they’ll make threats of violence if repayments are missed.

There is another way. If you need extra cash for emergencies and you have a poor credit history, the Hoot Credit Union may be able to help you. Find out more by visiting their website at www.wisewithmoney.org.uk.

Better still, don’t borrow at all. Instead, make a budget by writing down what money you have coming in and what bills you have to pay on a weekly or monthly basis. This way you’ll know exactly what you have left to spend each week or even each day.

For help to budget, phone us on 01204 328000.

How to spot a loan shark

A loan shark is an illegal money lender, which means they don't have a licence to trade. If you've borrowed money from someone and are unsure if they have a licence or not, you can check by going online to: www.fsa.gov.uk/register/home. Simply put in their details and it'll tell you if they're registered to trade.

Typically, a loan shark will:

  • not give you a credit agreement (no forms or paperwork)
  • not give you receipts for payments you have made or a payment book
  • take payments in cash and on a weekly basis
  • use threats, intimidation and violence when payments are missed
  • often work alone or have a tight group of collectors
  • might suggest other forms of payment (for example, involving you in handling stolen goods, prostitution or dealing in drugs)
  • will take ‘securities’ such as a cash card or passport
  • rarely advertise, and will use text messaging to contact you.

How to report a loan shark

If you suspect a loan shark, you can report them in confidence to the Illegal Money Lending Team (IMLT) by:

  • Phone: 0300 555 2222 (a 24-hour service)
  • Email: reportaloanshark@stoploansharks.gov.uk
  • Text: LOAN SHARK and the lender’s details to 07860 022116

You don’t need to provide your details when reporting a loan shark, this can be anonymous and you might not even have to provide a witness statement. The IMLT have prosecuted loan sharks without witness statements, they just need any information you can give them. If you want to provide your details, you'll get one-to-one dedicated support from the IMLT and police who'll help you during the conviction and after the loan shark has been convicted.

Be assured that since 2009 the IMLT has:

  • made more than 324 prosecutions
  • identified more than 2,000 loan sharks
  • helped more than 26,150 victims
  • wiped out over £62 million of illegal debt
  • helped to deliver prison sentences totalling 206 years for illegal money lending and associated crimes.

If you think you’re a victim of a loan shark, don’t hesitate, contact the Illegal Money Lending Team (IMLT).