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In this issue:
The England Illegal Money Lending Team (IMLT) have launched a new campaign aimed at tackling illegal money lending on the internet and warning of the dangers of online loan sharks.
The campaign comes amid concerns more people are falling prey to unscrupulous lenders online, as statistics show one in five victims met their lender on social media in the first half of 2020.
Loan sharks are increasingly using social media platforms, such as Facebook, Instagram and Snapchat, to advertise their illegal loans and target potential victims.
These criminals will lure people in with seemingly attractive loan offers but will quickly resort to intimidation, threats and violence to enforce repayment and trap borrowers in a spiral of debt.
This year’s Christmas campaign is called #SharkFreeSurfing. It is hoped that the campaign will help encourage not just victims but the wider community to report online illegal money lending activity.
Tony Quigley, Head of the England Illegal Money Lending Team, said: “We are aware that loan sharks are becoming more active on social media, particularly in community groups and on local selling pages, which we will not tolerate.
“Loan sharks are using online platforms to advertise their predatory lending activities and target potential victims. People throughout our communities are struggling financially due to the pandemic and the increased pressures to not only meet monthly bills but also the added expense of Christmas may make them more at risk of being targeted by illegal money lenders.”
How to protect yourself from loan sharks online:
- Know who you are dealing with. If you’ve only ever met someone online or are unsure of the legitimacy of a lender, take some time to do a bit more research. Check the lender is authorised by the Financial Conduct Authority (FCA) If not, don’t borrow from them and report.
- Beware of loan adverts with no credit checks. Loan sharks have been known to advertise in community groups and on local selling pages. They may seem friendly and accommodating, but their behaviour can quickly change, and you might be harassed or threatened if you get behind with your repayments. Lenders must carry out credit checks to make sure borrowers can afford to pay back their loans. You should never hand over your bank details to strangers, even if they lure you with attractive offers. Remember, if it looks too good to be true, it probably is.
- Beware of any requests for your details. Loan sharks may ask for copies of your passport or pictures of your house, the street and your house number. Never give details, online account details or copies of personal documents to anyone you don’t know or trust.
- There are legitimate services you can access for help with money, such as credit unions, which offer safe saving and affordable loans options. Find your nearest Credit Union.
- Start preparing your finances for next Christmas and open a savings account with your local credit union.
For advice on all money matters, including debt and loans, contact the Citizens Advice Bureau advice line on 03444 111.
You are not in trouble if you have borrowed cash or have been paying back a loan from an illegal money lender, the loan shark is. They are the people committing a crime, not you.
You can safely report a loan shark to the Illegal Money Lending Team on 0300 555 2222 or fill out the online form.
Alternatively, you can email the team reportaloanshark@stoploansharks.gov.uk or access support via live chat on the website Monday to Friday between 9am-5pm.
The Stop Loan Sharks App is free to download on both iOS and Android devices from the Apple App Store and Google Play Store.
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For more information on scams, visit: www.coventry.gov.uk/scams
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