Scots scammed by loan sharks can find support at a new site dedicated to tackling illegal lending.
Launched by the Scottish Illegal Money Lending Unit (SIMLU) the site will work in partnership with agencies and organisations across Scotland in an attempt to eradicate loan sharks.
It is hoped it will encourage those who have fallen victim to rogue lenders to report the issue through a confidential helpline and online form.
The unit has also expanded its network of organisations operating in communities that help residents to report illegal loan shark activity safely.
Charity Grampian Regional Equality Council (GREC) and social enterprise Scotcash are the new recipients of the Stop Loan Sharks Scotland Charter Mark in recognition of their commitment to supporting and promoting the work of the SIMLU and for taking a zero-tolerance stance on illegal money lending within their communities.
New partnerships will help the most vulnerable
Fiona Richardson, chief officer of Trading Standards Scotland, has welcomed the new additions to the unit and the ongoing commitment to tackling illegal lending.
Speaking of the partnership with GREC and Scotcash, she said: “We will work together to promote the message that you should not use loan sharks, but also to make sure that, where somebody has ended up using an illegal money lender, they know where to go to receive the appropriate help and assistance.
“In a period of great financial uncertainty, it is important that we take all the steps we can to stop people from borrowing from loan sharks and getting trapped in a cycle of debt and intimidation.”
What is a loan shark?
A money lender that isn’t registered with the Financial Conduct Authority (FCA) is regarded as a loan shark.
Known for adopting illegal methods of debt collection, loan sharks often use violence and intimidation to make victims repay. In some extreme cases, non-payers have been forced into criminal activities such as drug dealing and prostitution.
According to the SIMLU the pandemic has pushed many illegal lenders online, with crooks using social media adverts and messages to take advantage of those who are most vulnerable.
While the loans may be seen as a quick fix for those in a crisis, they often come with astronomical interest rates with figures showing on average, loans from illegal lenders end up costing three times as much as a legal loan.
How will the new site help?
The SIMLU is a Scottish government agency dedicated to investigating and prosecuting loan sharks and illegal money lenders.
If you have borrowed money through an illegal lender, its dedicated team will offer confidential advice and investigate your case.
The team can help with:
- Immediate support with urgent issues
- Long-term support to help you stop using loan sharks and illegal money lenders
- Access to local services such as debt help, credit unions, addiction counselling and local support groups.
They also have access to a variety of protective services and, depending on your circumstances, will work with organisations across Scotland that can help you move away from relying on illegal lending to get by.
How do I report a loan shark?
Reporting a loan shark may seem daunting, however, the team is on hand to offer guidance 24-hours a day.
You can report a potential loan shark or illegal lender by calling the SIMLU confidential helpline on 0800 074 0878 or use the secure online reporting form.
Their advice isn’t only available to those currently dealing with illegal lenders. You can also contact the team if you’re concerned about someone you know who you believe may have borrowed money.
People living with financial hardship and unable to access additional credit may turn to loan sharks or illegal money lenders in a bid to get by. If you’re worried about a friend, colleague or loved one in a vulnerable position, they can offer guidance.
What will happen if I report a loan shark?
Reporting a loan shark or illegal money lender is a confidential and anonymous process.
The team of experts will discuss the situation with you and determine whether further action is required.
Those who require support will be invited to share their experience with an investigator, including:
- The total amount borrowed
- How it is repaid
- Further information about the lender
This information can be given anonymously, however, can also be used as a signed witness statement if you agree.
Finding help with finances and debt
The SIMLU also offers support to those who feel they are no longer in control of their finances.
Experts can sign-post you to organisations who can offer further guidance, including ensuring you are receiving all the benefits you’re entitled to as well as housing and mental health support.
Alternatively, if you’re struggling with debt Carrington Dean can offer confidential advice.
As Scotland’s debt specialists we speak to people from all walks of life and provide a non-judgmental and professional service to help people get back on track with their finances.
