Ethos Public Relations Manchester

Joe should have got a Handy Loan

by Ethos public relations

Many millions of viewers are currently gripped by the Coronation Street story line which sees the character of Joe McIntyre struggle to pay off his ever increasing debt from an unscrupulous loan shark. Whilst Corrie fans may be shaking their head at the mess he is in, according to local housing association Hyndburn Homes - loan sharks are not figments of a script writer's imagination and could be operating in a street near you.

"This particular story line has obviously been written for dramatic impact," said Kim Smith from Hyndburn Homes. "However, reports show that many people in this area have dealt with a loan shark or certainly been tempted to do so."

In fact a recent report by the think tank Financial Inclusion Centre says around 100,000 of the UK's poorest families will be crippled with £82 million of debt during 2010 after borrowing money from loan sharks to fund the cost of Christmas.

"If you don't have enough disposable income it's tempting, especially at Christmas, to borrow a few hundred pounds to make sure your family has the latest gifts," said Kim. "However, people don't realise that loan sharks can charge such high interest that they simply can't pay back the loan.

"Many victims see the illegal lender as a friend, yet loan sharks often prey on the most vulnerable in society and can be dangerous."

As a way of helping to steer its residents away from loan sharks Hyndburn Homes teamed up with HHH Credit Union and Enterprise Lancashire Finance (ELF) in 2008 and launched a Handy Loan scheme for all tenants and leaseholders of its properties.

Credit Unions are membership-based, voluntarily run, not-for-profit savings and loans co-operatives that offer accessible savings accounts with no minimum deposits. They offer the facility of a low cost short term loan as well as peace of mind.

Kim adds: "When times are hard and money is scarce using the Handy Loan Scheme means people won't have to pay exorbitant interest rates which obviously can cause them a lot of problems in the long run."

Loans of up to £350 are available from this scheme which are assessed and granted subject to terms and conditions. People can also use the scheme to save up for special occasions and there is no minimum amount for savings but the maximum is £10,000."

If someone suspects that a loan shark is operating in their area, they should call 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.

"If you do need a loan - don't follow Joe McIntyre's example," said Kim. "Contact us for more information about the scheme along with general information about managing your money and debt advice."

Email: kim.smith@hyndburnhomes.co.uk or telephone 01254 300500.

Posted at 28^th January 2010