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Age is no barrier to loan sharks


Dear Resident

 

When 91-year-old Joe asked his local credit union for a loan to ‘pay his mate back’ alarm bells started ringing for staff.

Why was someone in Joe’s position being pressured to pay back money? Who exactly was the friend that had lent him cash?

When it was discovered that he had gone to the local Citizens Advice to ask for help as well, it became obvious that he was in trouble.

Staff asked the right questions and pointed Joe in the direction of Stop Loan Sharks, or the England Illegal Money Lending Team.

The specialist staff there quickly established that Joe had borrowed from someone who was not legally authorised to do so by the Financial Conduct Authority  – a loan shark.

Joe, who is mentally and physically fit for his age, revealed that he knew the loan shark through selling jewellery and had classed him as a friend.

He had been borrowing money from this ‘friend’ since 2013 and his debt had grown to over £6,000.

The loan shark was demanding repayments of £600 a month and Joe had simply run out of money and needed to borrow elsewhere to pay.

 

This is just one example of the hundreds of cases Stop Loan Sharks deal with every year.

 

  • Many think a loan shark is an intimidating gangster-type, usually male and between 20 and 40 years in age. Borrowers are often depicted as young, out of work, maybe a single parent.

     

    But in the vast majority of cases that image could not be further from the truth.

     

    In 2022, 22 per cent of those supported by Stop Loan Sharks were over 55. Joe was the oldest borrower at 91.

     

    Loan sharks can also be older. Recently two illegal lenders from London were ordered to pay £1.2 million in a Proceeds of Crime confiscation hearing. They are both women, aged 67 and 71. A man who was prosecuted in Bristol was aged 78 and the Stop Loan Sharks Wales Team recently had a case involving an 83-year-old woman, dubbed Britain’s oldest loan shark.

     

    Loan sharks come from all sections of society and from all age groups.

     

    So why do people borrow from loan sharks? The reasons are many and varied.

     

    In Joe’s case, he had started off borrowing small amounts for items he needed. But once loan sharks have a grip on someone they do whatever they can to make sure they keep that hold.

     

    In another case, Doris and Bob were both pensioners in their 70s, living on disability living allowance benefits.

     

    They were struggling to pay some bills and other debts and borrowed in total £18,000 from the loan shark, whose family they had known for many years. They thought the lender was helping them and said they would pay back £250 a week.

    But they were never given any paperwork and the loan kept going up, until it doubled to £32,000.

     Doris went to the post office every Monday morning and drew out £250 per week out of their benefits to pay the loan shark, but still they never seemed to make a dent in what they owed.

    Eventually they sought debt advice and, again, a frontline worker spotted the signs and put them in touch with Stop Loan Sharks.

    The team worked out that they had paid the loan shark £27,000 from their benefits over a two-year period.

     

    The Stop Loan Sharks team is made up of two sections – investigators who look into reports of loan sharks and gather evidence to support a prosecution, and Liaise officers who work with borrowers like Joe, Doris and Bob and support them through the journey back to financial freedom.

     

    In both cases, the Liaise officers were able to support these borrowers through their journey back to financial freedom, while investigators ensure the loan sharks were dealt with.

     

    While Joe was adamant that he did want to pay the money back, he was told that he did not have to. He is now debt free.

     

    Doris bravely decided that she wanted to make a stand as she realised she would never be free of the loan shark if she did not.

     

    She and Bob are now also debt free and looking forward to celebrating their ruby wedding anniversary without the threat of a loan shark over their shoulder.

     

    Tony Quigley, head of the England Illegal Money Lending Team, said: “The borrowers in these cases should be living peacefully and enjoying their retirement. Instead, they are living under a cloud of stress and intimidation from these illegal lenders who are thinking of nothing except lining their own pockets.

    “Illegal money lenders come in all shapes and sizes and from all age groups. They prey on people wherever they are vulnerable and pretend to be friendly, offering a favour of lending some-much-needed cash.

     

    “In truth leeches, taking advantage of others to fund their own lifestyle and ruining other people’s lives in the process.

     

    “If anyone thinks they are in this situation, they should feel no shame or blame – they have done nothing wrong. They can contact our team in complete confidence and we will do whatever we can to help them and bring these lenders to justice.”

     

    The warning signs of an illegal lender include:

     

  • Giving you no paperwork or agreement on a loan 
  • Refusing to give you information about the loan 
  • Keeping items until the debt is paid such as your bank card or pass
  • port
  • Taking things from you if you do not pay on time 
  • Adding more interest or charges so the debt never goes down 
  • Using intimidation or violence if you do not pay
  •  

    This year marks the 20th anniversary of the IMLT. Since its launch, the team has supported over 31,500 people and written off over £91.2 million worth of illegal debt, securing over 420 prosecutions for illegal money lending, leading to more than 600 years in jail.

     

    Anyone who has been affected by illegal money lending should call the Stop Loan Sharks 24/7 Helpline on 0300 555 2222 or access support online at www.stoploansharks.co.uk. Live Chat is available on the website from 9am to 5pm, Monday to Friday. 


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