An urgent warning has been issued over a "dangerous threat" to communities this Christmas.
As the cost of living firmly grips households across the UK, many people will be looking for ways to tighten their belts to afford Christmas. But as families struggle to cope with rising costs of food, fuel and energy bills, a warning has been issued about those targeting vulnerable people.
Figures released by the England Illegal Money Lending Team (IMLT) shows that nearly one in ten of those who borrowed money from loan sharks last year did so to cover the costs of Christmas. As we head into the festive period, St Helens Council is urging people to remain vigilant.
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Councillor Jeanie Bell, St Helens Borough Council's Cabinet Member for Safer, Stronger Communities, said: "Loan sharks pose a dangerous threat to our communities, now more than ever. They charge exorbitant interest rates and target the most vulnerable with aggressive and exploitative practices.
"The impact of illegal money lending is severe and far-reaching, with devastating consequences not just for the finances, but for the mental health and wellbeing of those affected. It's vital that local people understand the dangers of using loan sharks and the options they have if they are struggling."
The ECHO previously reported on a similar warning from a Sefton charity over “heartless predators” who are targeting people in “unexpected” areas. Jane Groves, organisational and development manager of Citizens Advice Sefton, said people have been in touch with her service about loan sharks operating in affluent parts of the borough, including Formby and Southport as well in the more deprived areas in the south like Bootle.
St Helens Council shared estimations from the Centre for Social Justice which suggests that 1.08 million people could already be in debt to an illegal money lender. And there are concerns nationally that the scale of debt will spiral due to increasing financial pressures.
A new social media campaign, #SleighNoToLoanSharks, is being launched to alert people about the dangers of using loan sharks and help prevent them from falling into their traps in the run up to Christmas.
Tony Quigley, Head of the England Illegal Money Lending Team, added: "Loan sharks are doing untold damage in local communities, and we must do all we can to stop them. With their ruthless tactics, these predators are threatening vulnerable families, driving them deeper into debt, and pulling entire communities into an endless cycle of despair.
"At a time when families are under extreme cost pressures with mounting living costs, we are deeply concerned that those who are already struggling to make ends meet could be targeted by these predatory lenders. Our campaign aims to break this cycle by helping people understand the risks of loan sharks, what they can do if they feel threatened and where they can turn for help and support.
"The Stop Loan Sharks 24/7 Helpline offers confidential advice and support to anyone affected by illegal money lending. We know how stressful and frightening this experience can be. We can give you support on how to deal with this problem and help find a way forward."
According to www.stoploansharks.co.uk, there are five safety tips you can carry out to protect yourself from loan sharks. These include:
- Think carefully before taking out a loan and consider other options
- Never send money or give credit card, online account details or copies of personal documents to anyone you don't know or trust
- Do your research first. If you're thinking about borrowing money, check that your lender is genuine
- Other services such as credit unions can help you save and keep track of your finances
- Contact Stop Loan Sharks for confidential help and support
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