Ethos Public Relations Manchester

Don’t be tempted by loan sharks this Christmas

by Ethos public relations

Christmas can be an expensive time for everyone and the Revenue Services team from Contour Homes is advising people not to be tempted to use loan sharks to fund their extra expenditure during the festive period.

Ann Walton from Contour Homes said: Many people who use loan sharks are already financially vulnerable – on low incomes or do not use a bank account. Last year a report by Policis estimated that 310,000 households had borrowed from loan sharks or illegal money lenders.

“We work very closely with the England Illegal Money Lending Team and 20% of victims they work with took out their original loan to pay for Christmas.”

Most illegal money lenders are friendly to their borrowers at first, but through exorbitant rates of interest - as high as 131,000% APR in some cases - and additional arbitrary amounts, they will trap their victims into a spiral of debt. They rarely offer paperwork, keeping their victims in the dark as to what they owe, and some will even take bank cards and PINs to withdraw directly from accounts.

When victims are unable to pay, many loan sharks will also resort to threats, violence and intimidation.

Tony Quigley Head of England’s Illegal Money Lending Team said: “As Christmas approaches we would like to make it especially clear that no matter how desperate you are these criminals should always be avoided. This is a despicable crime that will not be tolerated. “

As they are not licensed money lenders, loan sharks operate outside the law. If you have borrowed from an illegal money lender - you haven't committed a crime - they have!”

Contour Homes’ Financial Inclusion Team suggests people can help to reduce the cost of Christmas in numerous ways including:

* Having a budget and sticking to it

* Organising a ‘secret Santa’ -instead of buying everyone a gift

* Making or baking a gift instead of buying one

* Sharing the provision of food and drink at parties

* Give a ‘time’ voucher and offer your time to provide services such as shopping, gardening, ironing or cleaning – instead of a gift.

Ann said. “The best way to have a happy Christmas is to have one you can afford. If you think you need a loan for the festive period then our advice is to look at an alternative funding source such as a credit union.

"Using a loan shark will just extend your debt misery for the rest of the year.”

Credit Unions can be a credible alternative, especially for people on low incomes or who do not have access to a bank account and they provide loans at a safe and affordable rate.

To find your local credit union, go to www.abcul.coop To report a loan shark operating in your area to 0300 555 2222, email reportaloanshark@stoploansharks.gov.uk or text loan (space) shark (space) + your message to 60003. Any information is given in the strictest confidence.

Click here to read more press releases for Contour Homes from Ethos public relations.

Posted at 6^th December 2011