A quarter of illegal money lender victims over the past year in the UK have been self-employed, with more than 90 percent knowing the loan shark before taking loans.
During the current credit crisis, small Slough businesses and self employed people have found it harder to access credit through mainstream routes and have considered going to a loan shark.
In 2008, of those interviewed by the Stop Loan Sharks team, 24 percent said they were self-employed, with the majority being taxi drivers, and the remainder were in the building trade (painters, labourers etc).
The difference between a legal lender and a loan shark is, legal lenders have a licence to offer credit (loans), provided by the Office of Fair Trading, whilst loan sharks don’t.
Obviously, this has many illegal implications, not to mention the threats, exceedingly high interest rates, and at times, violence to recover the repayments.
Therefore, Slough Borough Council’s trading standards, along with Trading Standards South East’s illegal money lending team, are now hunting and prosecuting the loan sharks, as part of the council’s safer community priority.
Anyone borrowing from a loan shark is not breaking the law. Only the illegal lender is. They normally offer a loan with no paperwork, take deposits such as a bank card or jewellery, charge extortionate interest rates and even use intimidation or violence to make people repay.
Keith Eaglestone, manager for trading standards, Slough Borough Council, said: “It’s our main priority as part of our safer communities to make sure Slough residents are aware of loan sharks and the implications that come with taking out a loan with one.
“We’re in very hard times, and many people are finding it increasingly difficult to arrange a loan within the normal means, so may feel their only chance is through a loan shark.
“Taking out such a loan could cost you very dearly in the long run, as interest rates are extremely high and you could end up paying back more than five times what you borrowed.”
Commissioner for Slough community and leisure, Cllr Shafiq Chaudhry, added: “I would urge anyone who either knows of a loan shark or has borrowed from one to get in contact with the specialist Stop Loan Shark team.
“It is totally unacceptable that some people literally rob others of their hard earned money, and mainly those who really cannot afford to pay high interest rates.
“These illegal lenders must be stopped and Slough must stand up to them and show the loan sharks they’re not welcome in our town.”
If you or someone you know is a victim of a loan shark, please contact trading standards in strictest confidence, 24 hours a day on the confidential hotline, 0300 555 2222.
Slough Borough Council
