Stockport Council is warning residents to be on their guard against illegal money lenders in the run up to Christmas as what may seem like a loan for Christmas could end up costing residents well into the New Year and beyond.
In the majority of cases victims are introduced to the lender either through a friend, family member or because they are known in the community. They believe the lenders are offering them a service but their behaviour can quickly change.
Loan sharks and illegal money lenders rarely offer paperwork and are unclear on the terms of the loan, so borrowers are completely in the dark as to how much they are actually paying. Extra amounts and interest payments are added completely at random, so the debt spirals.
The Council’s Trading Standards team is urging residents to report suspected loan sharks to the Illegal Money Lending Team in confidence by calling 0300 555 2222 or emailing reportaloanshark@stoploansharks.gov.uk
A Stockport Council spokesperson warned:
“We know that illegal money lenders prey on people who are vulnerable due to their financial situation and this can often occur in the run up to Christmas. While in the short term the victim’s situation may be helped by the loan, in a very short amount of time the amount they owe to the loan shark spirals out of control thanks to high interest rates and, commonly, the threat of violence and other forms of harassment follow.”
Stockport Credit Union can offer safe loans to established members. For more information call 0161 430 5808 or visit http://home.btconnect.com/stockportcu/
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