Stop Loan Sharks

"It's caused ultimate stress and disruption to my whole life. Had to relocate, change kid's schools and start afresh. The experience has led me to depression and I now have to take medication to help and support my sleep. It has lead to breakdowns in relationships, living in poverty and disruption to all forms of life"

With around 310,000 families across the country using loan sharks, situations like this are becoming an all too familiar tale. Many victims felt that their lender was a friend, but were shocked when they became intimidating or violent

Loan sharks prey on the most vulnerable members of our community, charging extortionate interest rates- the highest we have seen is a whopping 131,000%. They rarely offer paperwork, so 'customers' are in the dark about how much they still owe. People are left in a position where they are unable to pay and other expenses such as rent and bills fall by the wayside; this is when the loan sharks resort to any means to reclaim what they believe is theirs.

Fortunately the National Trading Standards illegal money lending teams are making a difference, having secured over 107 years worth of custodial sentences for these criminals.

Working with partner agencies, the teams have helped 16,000 victims of loan sharks turn their lives around. When the people who work at the heart of our communities are aware of the problem they can really make a difference. Jayne* tells her story:

Jayne's Story

Single mum of two Jayne, worked in the local pub but pulling pints never earned her quite enough to pay the bills.

After confiding in a friend about her troubles she was given a number for someone who could help her out. Dave offered her a £500 loan. He would come to her home and collect £25 a week as repayment. Jayne signed a piece of pink paper to agree to this, convinced that he must be legitimate because he had paperwork.

However Jayne then moved home and was not able to work. Her priority was to feed the kids, so she asked Dave if she could have a break in the payments.

He said no but offered her another loan for £1500, landing her in more financial hot water.

Dave had a proposition for her, he had some work she could do, not bar work, but working topless in a massage parlour and offering 'extras.'
 
She was not willing to get involved, but as her situation grew worse through desperation and fear of what Dave may do to her, she gave him a call.

This is when he came to her home and raped her. After this she still continued to pay what she could. She fell into deep depression and was admitted to hospital.

Jayne said "I deeply regret ever taking a loan out with this man.   The last few months have been a nightmare.  I have never felt in such a helpless situation'.

However her story does have a positive ending, a leaflet was posted through her door and she contacted the team. From that moment on she supported 100%. Now the man who lent her money is behind bars and Jayne is going from strength to strength.

"The Stop Loan Sharks team have supported me through an emotional time.  I was enrolled in counselling to help with my confidence and self esteem and now have savings for the first time in my life through the local credit union.  I have received budgeting and debt counselling advice from the citizens advice bureau and am now in full time employment, doing a level 2 NVQ and off benefits.

I now no longer just exist but live my life and look forward to the future. I am happier than I've ever been"

*Names have been changed.

If you think you may be involved with a loan shark, call the team in confidence on

0300 555 2222.

Text 'loan shark + your message' to 60003
E-mail reportaloanshark@stoploansharks.gov.uk
Log-on to www.direct.gov.uk/stoploansharks