Ref: NE-44- Bin Wagons and Taxi Wraps
Date: Monday 4th February 2013
England Illegal Money Lending Team
Part of Trading Standards – funded by NTSB
Campaign tackles loan sharks across the North East.
The England Illegal Money Lending Team are working in partnership with North Tyneside Council, South Tyneside Council and Newcastle City Council Trading Standards to highlight the dangers of loan sharks and encourage victims to come forward.
Using proceeds of crime money taken from convicted loan sharks, the Team have funded magnetic strips displaying of the 0300 555 2222 hotline number for reporting loan sharks to be seen on bin wagons across the North East.
In Newcastle they have also funded a striking display of the number across taxis.
An estimated 310,000 households across the country are in debt to a loan shark, with 20% of victims in past cases taking out the loans to pay for Christmas. There are concerns at this time of the year that people who may have been tempted to borrow from a loan shark during the festive period, will now be subjected to exorbitant charges and additional interest, threats, intimidation and potentially violence.
Anyone who is in this situation or knows of someone who is, is encouraged to call the hotline in confidence.
Loan sharks usually appear friendly at first but quickly trap their borrowers into spiralling debt. As the debts can’t legally be enforced many lenders will resort to the most extreme and callous methods to enforce repayment including threats, violence and intimidation.
Paperwork is rarely offered so victims are often in the dark as to how much they are actually paying. Exorbitant extra amounts and interest are added at random- the highest interest seen by an illegal lender was equivalent to 131,000% APR. In some cases the loan sharks have been known to take items as security including passports, driving licenses or even bank or post office cards with the PIN in order to withdraw directly from borrower’s accounts.
The displays are part of the England Illegal Money Lending Teams ongoing work to raise awareness and help tackle this crime in the North East.
Cllr George Westwater, North Tyneside Council’s cabinet member for Community and Regulatory Services, said: “We work closely with the Illegal Money Lending Team to help protect our residents from loan sharks and I’m delighted that we’re supporting this initiative.
“It’s vitally important that we continue remind people of the risks of illegal money lending as well as ensure victims know where to turn to for help.”
Cllr McCartyDeputy Leader and lead for Financial Inclusion at Newcastle City Council said: “I am delighted that once again the national Illegal Money Lending Team, through the use of these highly innovative advertising methodsare helping us to bring attention to this important campaign.The City Council, through the work of the Financial Inclusion group is committed to ensure thatall of our residentscontinue to live in Newcastlewithout having the threat of loan sharks hanging over them. If you think a deal is too good to be true then it probably is, but if you do need financial helpthere are many legal and safe ways of borrowing money or saving with credit unions.”
Councillor Tracey Dixon, Lead Member for Area Management and Community Safety, at South Tyneside Council said: "Loan sharks are unscrupulous and bring misery and fear to those who borrow from them.
“They prey on the most vulnerable, and in the current financial climate it may seem tempting to turn to these kind of lenders for a quick fix, but it is no solution.
“There is help at hand though and we are delighted to be working alongside the Illegal Money Lending Team on this campaign to highlight the issue.
“It’s also entirely appropriate that money recovered from convicted loan sharks is being ploughed back into raising awareness and helping victims.”
The National Trading Standards Board’s chairman David Collinson said: “Loan sharks target the most vulnerable in society and trap them for years – even decades – with crippling repayments.
“The National Trading Standards Board’s specialist Illegal Money Lending Team helps tackle these despicable criminals nationally, providing a safe haven to enable victims to come forward. They work together with local authority trading standards services, and other partners, to bring loan sharks to justice.
“This signage campaign on taxis and bin wagons is a great initiative by the England Illegal Money Lending Team to raise their visibility within communities.
“We would urge anyone in the grips of a loan shark to call 0300 555 2222 in confidence to report the criminal and to get help.”
Tony Quigley Head of the England Illegal Money Lending Team said “Loan sharks are a scourge on our communities, trapping people into spiral of debt and often inflicting harm through threats, violence and other extreme methods to enforce repayment. No matter how strapped for cash you are, our message is clear, loan sharks are never the answer. There is help at hand if you or someone you know has been the victim of a loan shark. Call us in confidence on 0300 555 2222. Lines are open 24/7”
To report a loan shark:
Call the 24/7 confidential hotline 0300 555 2222
Text ‘loan shark + your message’ to 60003
Private message us on www.facebook.com/stoploansharksproject
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For more information contact Sarah-Jane Lynch, Illegal Money Lending Team communications officer, on 0121 693 1030 or 07881617119. To speak to the National Trading Standards Board with a more general enquiry please contact the Trading Standards Institute press office on 0845 6089430.
Notes to editors
Photographs are attached:
Councillor Tracey Dixon with the Bin Wagon in South Tyneside.
Councillor Joyce McCarty with the Bin Wagon and Taxi in Newcastle.
The National Trading Standards Board (NTSB) represents all trading standards services across England and Wales. The Board was established by the Government to improve the enforcement of laws intended to tackle rogue traders operating both regionally and nationally who are causing harm to consumers and legitimate businesses. The NTSB issues grants and funds national and regional initiatives such as Scambusters, the Illegal Money Lending Teams, Safety at Ports and the National Trading Standards eCrime Centre.
Nationally, Illegal Money Lending Teams have secured 220 prosecutions for illegal money lending and related activity, leading to more than 150 years-worth of custodial sentences. They have written off almost £40 million worth of illegal debt and helped over 19,000 victims.
Funded by the National Trading Standards Board, the Stop Loan Sharks Project consists of three Illegal money lending teams; England, Scotland and Wales. Hosted by Birmingham City Council and working in partnership with local Trading Standards Authorities up and down the country, the England Team consists of specialist officers who investigate and prosecute illegal money lending and related activity and LIAISE officers who support victims and raise awareness of the dangers of borrowing from illegal money lenders. The project piloted in 2004, and expanded in 2007.
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