More over-55s are turning to loan sharks to pay household bills because of rising costs, but alternative help is available say local organisations.
The Illegal Money Lending Team – which investigates loan sharks and illegal lending – says 237,000 over 55’s borrowed from loan sharks in 2022, getting into debt to pay regular bills such as gas and water .
Across the UK, three million people have been driven to use loan sharks to make ends meet since 2021.
Illegal lending is a risky business, often involving exorbitant interest rates and sometimes even the threat of physical violence. But almost one in 12 UK adults have turned to an illegal lender over the past three years, a report by financial inclusion organisation Fair4All has shown.
The Illegal Money Lending Team, which covers North East Lincolnshire, is now running a campaign to raise awareness of the dangers of borrowing from illegal lenders (also known as loan sharks), particularly for people aged 55 and over.
The England Illegal Money Lending Team (IMLT) was set up in 2004. Initially created as a pilot scheme in Birmingham to investigate loan sharks, it had such an impact on illegal money lending it received further government funding.
Today the England IMLT investigates and prosecutes illegal money lenders while supporting those who have borrowed money from a loan shark. Since 2004, it has supported over 31,100 people and written off over £91.2-million worth of illegal debt.
Support locally is also available from a variety of sources if you cannot meet household costs. Housing related support is available from North East Lincolnshire Council by calling 01472 326296 (option 1) or at nelincs.gov.uk. For home energy advice call the council’s Home Energy Team on 01472 326296 (option 5) or email [email protected]
The not-for-profit HEY Credit Union has helped North East Lincolnshire residents to save over £600,000 in interest charges since January 2022 by borrowing from them. Visit them at www.hullandeycu.co.uk
You can also pop in to see them at Grimsby Library (Tuesday to Thursday 10am-2pm); Community Shop, Centre 4 (Tuesdays 10am-12.30pm); West Marsh Community Centre (Wednesdays 11am-2pm), and Freeman Street Market (Fridays 10 am-2pm).
HEY Credit Union representative Matthew Stevens said: “When looking for help to spread the cost of a big bill or unexpected expense, your local Credit Union has affordable, flexible credit and savings options tailored to the needs of anyone finding it hard to make the most of a limited income.
“We are a co-operative, owned by the people we serve, and our friendly team is here to help you to be good with money, not make money out of you. A £25 new member bonus can be earned when joining us in North East Lincolnshire. Please don’t hesitate to get in touch.”
Cllr Stephen Harness, NELC Portfolio Holder for Finance, urged local people to seek help at the earliest opportunity if they cannot pay their bills. “There are a number of organisations ready to assist local people who cannot meet their bills this winter and the sooner people contact them the better,” he said.
“We are very aware that rising bills place immense pressure on people of all ages who may feel that they have no choice but to seek alternative lending sources.
“Loan sharks are people who charge you to borrow money but are not regulated by the Financial Conduct Authority. What they do is illegal and they certainly do not have your best interests at heart when they lend to you.”
If you have fallen victim to a loan shark call the England Illegal Money Lending Team on 0300 555 2222 or visit https://www.stoploansharks.co.uk/who-we-are/
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