Secured Loan News - Dec 06

Loan Sharks and Debt Problems

According to reports by the UK Department of Trade and Industry it is thought that approximately 165,000 households are borrowing money from illegal sources (loan sharks). These loan sharks offer exceptionally higher interest rates than normal, to those individuals who are less fortunate and unable to obtain credit/loans from conventional loan providers using fear as their primary weapon for repayment.

Please don't let yourself get in such a situation and always seek the advice of a FSA Regulated specialist, who will assist you in the most ethical manner. Once you enter this world of loan sharks and unethical lending you are going to find it very hard to get out, so be aware of the risks to you and your family.

The good news: The British government have proposed to deal with this problem by pledging £1.2 billion, which will go towards providing additional enforcement teams who's remit will be to tackle this growing problem of illegal money lending. Whilst equally helping to promote financial inclusion for the more disadvantaged. Glasgow and Birmingham have already implemented pioneering schemes to combat loan sharks in their respective areas and in addition, have started to pull together funding to build these projects and extend them to similarly blighted areas in Britain, including Sheffield, Liverpool and West Yorkshire.

Apparently half of the 165,000 households that borrow money from loan sharks are in the 's most deprived areas; while the total value of money put forward by illegal money lenders in each year amounts to nearly £40 million - with repayments amounting to over £120 million annually.

Remember: Loan sharks prey on the poorest people in our communities and use threats and violence to intimidate the people they are ripping off. These people are the lowest of the low and should if guilty; be behind bars where they belong.

Skip To Content