Loan Sharks Coming Under Attack

The Office of Fair Trading and trading standards officers are stepping up their campaign against loan sharks.  As personal insolvency continues to rise in the UK, people will do anything to clear that debt, and there are hundreds of loan sharks waiting for the opportunity to worsen their position.

200,000 leaflets are being sent out to people to warn of the dangers of loan sharks, firstly because of the illegality of loan sharking and secondly warning of the violent nature of many of these lenders.

Households in Scotland, the North of England and the West Midlands are the main areas being targeted by the campaign.

It is thought these areas contain about half the 165,000 homes in Britain who borrow cash from loan sharks.

"Unlicensed loan sharks will often offer cash loans without paperwork, they may take benefit or bank cards as security, and threaten or use violence to get money," said the OFT.

The regulator have said they have already had a helping hand in writing off around £31 million pounds in illegal loans, helping out nearly 12,000 people and resulting in prison sentences for some lenders.

The campaign will highlight the dangers of being charged exorbitant interest rates as well as the possibility of suffering threats and violence.

Posted at 04:32PM May 26, 2010 by Marc Stenton in Insolvency  |  Comments[0]