Advice on how to avoid illegal loans
TRADING standards officers in North East Lincolnshire are warning residents to steer clear of illegal lenders this Christmas.
When budgets are traditionally stretched on seasonal gifts, food and celebrations, those who need to bridge a gap in their finances are urged to think carefully about where they go to borrow money.
Illegal and doorstep lenders often target people who would otherwise be unable to obtain credit from High Street lenders – but their interest rates can be extortionately high, and failure to meet repayments can result in much higher financial penalties, harassment for repayments; pressure into taking out a bigger loan to cover the debt, and the threat of violence.
According to a Policis Report, a survey of victims of loan sharks showed that 20 per cent of victims took out their loans to give them extra money for Christmas.
Councillor Steve Beasant, portfolio holder for community safety, neighbourhoods and customer services, said: “We all want to enjoy the festive season, but I would urge local residents to think twice before borrowing money from illegal lenders. It might appear that they can get you out of a fix, but you could find yourself in a much bigger financial problem if you’re not careful. Instead, you can get good financial advice from Moneyline or the North East Lincolnshire Credit Union.”
If you have borrowed from an illegal lender or know someone who has, you can get help from the Illegal Money Lending Team on 0300 555 2222. The hotline is open across the festive season, answered by trained investigators. Alternatively, contact Consumer Direct on 08454 04 05 06.
Advice on legitimate borrowing, especially for those who have a poor credit status, is available locally. You can call Moneyline on (01472) 267600 or the North East Lincolnshire Credit Union on (01472) 361990. Advice on debt is also available from the Grimsby, Cleethorpes and District Citizens’ Advice Bureau on (01472) 252500.