Council's Loan Shark Warning
Posted: Sat Jul 10, 2010 11:23 amCOUNCIL’S LOAN SHARK WARNING
Argyll and Bute Council is advising residents who may be struggling financially to think carefully before borrowing money from unofficial sources.
The warning came after the trading standards team became aware of several residents who have taken out loans with illegal money lenders, better known as loan sharks.
These doorstep lenders prey on the vulnerable, and are always keen to lend money but do not disclose the extortionate rates of interest they charge, which means that their victims have to pay back many times what they borrowed.
Loan sharks often use intimidation and threats of violence to if any payments are missed.
Doorstep money lenders are acting illegally because they require to be licensed by the Office of Fair Trading and comply with its Code of Practice which is all designed to protect borrowers.
People who borrow from a loan shark will typically have no paperwork spelling out important information such as what the rate of interest is, the period over which the money must be paid back and what the total amount payable is.
Where a borrower is not provided with the correct documentation the debt becomes unenforceable and they are not legally liable to repay the debt.
Councillor Daniel Kelly, chair of the council’s Planning, Protective Services and Licensing Committee, said: “Our trading standards team has discovered several local residents who have loans with doorstep lenders and do not have the statutory paper work which should have been given to them at the time they took out the loans.
“These people are totally in the dark as to how much they are being charged for the credit, how long they will be expected to continue making repayments and what the total amount is which they will have to repay.
“Although the likelihood is that they are not legally obliged to pay this money back, loan sharks tend to thrive on intimidation and threats and it is very, very difficult for anyone caught up with them to get out of the situation unharmed.
“My advice to anyone looking to borrow money is to approach to a reputable lender. Dealing with loan sharks is never, ever a good idea.”
The government-funded Scottish Illegal Money Lending Team investigates reports of illegal money lending, and often seizes any proceeds of crime assets which be used as compensation for victims.
Anyone who has concerns about a debt that they repay at the door, think they have been targeted by a loan shark or knows of any activities of an illegal money lender should contact trading standards on 01546 404604 or call the Illegal Money Lending team on 0300 555 2222 (local rate).
Argyll and Bute Council is advising residents who may be struggling financially to think carefully before borrowing money from unofficial sources.
The warning came after the trading standards team became aware of several residents who have taken out loans with illegal money lenders, better known as loan sharks.
These doorstep lenders prey on the vulnerable, and are always keen to lend money but do not disclose the extortionate rates of interest they charge, which means that their victims have to pay back many times what they borrowed.
Loan sharks often use intimidation and threats of violence to if any payments are missed.
Doorstep money lenders are acting illegally because they require to be licensed by the Office of Fair Trading and comply with its Code of Practice which is all designed to protect borrowers.
People who borrow from a loan shark will typically have no paperwork spelling out important information such as what the rate of interest is, the period over which the money must be paid back and what the total amount payable is.
Where a borrower is not provided with the correct documentation the debt becomes unenforceable and they are not legally liable to repay the debt.
Councillor Daniel Kelly, chair of the council’s Planning, Protective Services and Licensing Committee, said: “Our trading standards team has discovered several local residents who have loans with doorstep lenders and do not have the statutory paper work which should have been given to them at the time they took out the loans.
“These people are totally in the dark as to how much they are being charged for the credit, how long they will be expected to continue making repayments and what the total amount is which they will have to repay.
“Although the likelihood is that they are not legally obliged to pay this money back, loan sharks tend to thrive on intimidation and threats and it is very, very difficult for anyone caught up with them to get out of the situation unharmed.
“My advice to anyone looking to borrow money is to approach to a reputable lender. Dealing with loan sharks is never, ever a good idea.”
The government-funded Scottish Illegal Money Lending Team investigates reports of illegal money lending, and often seizes any proceeds of crime assets which be used as compensation for victims.
Anyone who has concerns about a debt that they repay at the door, think they have been targeted by a loan shark or knows of any activities of an illegal money lender should contact trading standards on 01546 404604 or call the Illegal Money Lending team on 0300 555 2222 (local rate).