Fears over debt the cover Christmas

FEARS OVER DEBT AS MORE PEOPLE COULD TURN TO LOAN SHARKS TO COVER CHRISTMAS

By Omar Mohammed

Christmas is a time people celebrate, share joy and happiness, but due to the souring costs of living is making many families poorer, this year it will unquestionably be a time of struggling for many families and individuals.

The England Illegal Money Lending Team (IMLT) statistics reveal that about one percent of those who go for loans went to loan sharks for money they would use to cover their Christmas related cost this year. More worryingly, over half of these people turned to illegal money lenders to support their ever-increasing costs of living for the first of 2022.

Throuth increased suspected loan shark arrests across the UK, the government reports over one million victims could have already been dealing with debts as result of illegal money lender. This represents about 700.000 more people than most the most recent official records.

Why are loan sharks illegal and differ from conventional credit services? Contact the Stop Loan Sharks 24/7 Helpline on 0300 555 2222 for support

or visit www.stoploansharks.co.uk. Live Chat is available on the website between 9am and 5pm, Monday to Friday.

For media enquiries and interview requests, please email: press@stoploansharks.gov.uk

Citizen advice considers loan shark as any money lending set, procedures or act completed outside the rules and regulation set by the Financial Conduct Authority (FCA), and therefore considers any of these process as breaking the law and illegal.

Loan sharks present a significant threat to the safety, security, and the well-being of many individuals. They use deceptive tactics that can isolate people from their friends, family, and from all support services. You can put that at and end today and stop the suffering these criminals inflict on borrowers.

Because of this unlawfulness, loan sharks usually target the most vulnerable communities and individuals and put them in an interminable cycle of debts with extremely higher interest rates without standard and agreeable timeframes, and to some extent the use of threats and violence, with rare or no papers detailing a contract.

IMLT, which since its inception in 2004, have supported 30,000 victims and has managed to write off close to £90 million worth of illegal debt, suggests the following to protect yourself and your loved ones from falling to loan shark traps. • It’s important to think carefully before taking out a loan and consider other options. • Never send money or give credit card, online account details or copies of personal documents to anyone you don’t know or trust. • Before you borrow, it’s important that check and research first the firm or person you’re dealing with is listed on the Financial Services Register. • Consider other lawful, available alternatives. Credit unions for example are a lifeline for many people, with their services helping members to save regularly, borrow responsibly and keep track of their finances. • If you’re worried about a friend or family member, or if you need help yourself, Stop Loan Sharks can offer confidential advice and support.