Loan Sharks Under Attack

Published / Last Updated on 24/04/2018

On the same day that the Financial Conduct Authority (FCA) responds to an independent review of funding debt advice in the UK, HM Treasury has announced greater funding is to be provided by the government to tackle illegal lending and loan sharks and protect vulnerable people.

  • £5.5 million + will be used to fight against loan sharks, to investigate and prosecute illegal lenders and support their victims
  • £100,000 of money already seized from loan sharks will redirected and used to join a credit unions, helping us access a safer forms of finance rather than going to illegal money lenders

John Glen, Economic Secretary to the Treasury said: “These nasty lenders are nothing more than lowlife crooks taking hard-earned cash from the pockets of the most vulnerable. Over 300,000 people are in debt to illegal money lenders in the Britain and they need to know that we’re on their side. That’s why we’re taking the fight to the loan sharks and spending more than ever to support their victims.”

Do Results Justify the Means?  Since 2004

  • 380 prosecutions
  • 28,000 people have been helped
  • £73m of illegal debt written off

Comment

This is a 16% increase in this year’s funding to tackle illegal lending at £5.67m.  Over 14 years since its launch 2004, this has been costly but no doubt a worthy exercise to try and protect people long term.  Without it, no doubt thousands more may have suffered.

If you are worried, you can contact the Illegal Money Lending Team Confidential Helpline: 0300 555 2222.

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