THIS month we would like to give readers some information about loan sharks, what they do and how to avoid becoming a victim of them.

A loan shark is someone who lends money without a Consumer Credit Licence. Illegal money lending is a criminal offence with a maximum penalty of two years in prison and a £5,000 fine.

Anyone can be a victim of a loan shark – family, friends, neighbours and even you. It’s not always easy to spot a loan shark as they will at first appear friendly and helpful but will turn on you when you can’t pay.

If someone is struggling to pay a debt, the loan shark will resort to threats, violence and intimidation to get money; they will typically have little paperwork and will add penalty charges for late payments. If they can’t afford to pay, victims could be forced into crime, selling drugs, being sexually exploited or becoming debt collectors themselves.

Victims often don’t report loan sharks because they fear reprisals. They may also worry that they will receive a criminal record if the police or other agencies become aware of their transactions with the loan shark; however, this is not the case. A loan shark can be reported anonymously.

Our advice is:

  • Only borrow money from someone with a valid Consumer Credit Licence. You can check by visiting the Office of Fair Trading website and searching Customer Credit Register
  • Be careful who you trust - the Illegal Money Lending Team (IMLT) found that nearly four out of five loan shark victims found the lender through a friend and that around half of victims considered the loan shark to be a friend
  • Report loan sharks to the IMLT, which is part of Worcestershire Regulatory Services and investigates illegal money lending and any related offences.

Nationally they have secured more than 300 prosecutions, leading to more than 190 years’ worth of custodial sentences. They have written off almost £42 million worth of illegal debt and helped over 23, 000 victims.

How to contact the IMLT

  • Telephone: 0300 555 2222 
  • Text ‘loan shark + your message’ to 60003 
  • E-mail: reportaloanshark@stoploan sharks.gov.uk Log on to www.direct.gov.uk/stop loansharks

For more information about North Worcestershire Community Safety Partnership, visit www.nwcsp.org follow us on Twitter @saferwyreforest

SUE HANLEY Chairman North Worcestershire Community Safety Partnership