TRADING Standards are urging people to report loan sharks as the credit crunch leaves more and more people embroiled in debt and misery.
Illegal moneylenders affect more than 1,500 families in the South every year, often using violence, threats and blackmail to recover money at exorbitant rates of interest. Many people wrongly believe they cannot report this intimidation as they think borrowing the money is an offence itself.
Clive Robinson, Trading Standards team leader at Southampton City Council, said: “Victims of loan sharks definitely do not commit an offence – they are the victims.”
Interest rates from loan sharks are typically over three times that of the most expensive legal lenders, and in one case the victim was paying money back at 117,000 per cent APR, leaving him with just £24 per week to live on.
Loan sharking is an offence under the Consumer Credit Act, and those caught often receive custodial sentences as they are prosecuted for related offences.
Mr Robinson added: “Victims will be provided with specific support in terms of protection from harassment and access to other funds. Once they do report it their debt is written off. The message is if you are a victim, report it and we will take action.”
To report a loan shark you can call 0300 555 2222 or 023 8057 1122.
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