A 43-year-old man was arrested on suspicion of illegal money lending and money laundering following an operation by the England Illegal Money Lending Team in Brighton early today.
The IMLT worked in partnership with officers from Sussex Police to execute a warrant at an address in the Elm Grove area.
Officers seized electronic devices and the suspect was taken into custody to be questioned by IMLT investigators.
The IMLT works in partnership with Brighton and Hove City Council Trading Standards Service to investigate and prosecute illegal money lenders.
Dave Benbow, head of the IMLT, said: “Today’s action forms part of our continued efforts to investigate reports of illegal money lending and protect communities from the harm it causes. Working closely with our partners, we will continue to take robust action against illegal lenders who profit from intimidation, fear and exploitation.
“Illegal lenders often take advantage of people who are struggling financially. Warning signs can include being threatened when you cannot make repayments, having your bank card held as security, or finding that your debt continues to grow despite making regular payments.
“If you have experienced any of these, or if you have information about illegal lending activity anywhere in the country, I urge you to contact our team in complete confidence. One call could help protect you, your family, or someone in your community from further harm.”
There are up to 1.7 million people in debt to loan sharks in England, according to figures from the Centre for Social Justice (CSJ).
Many illegal money lenders are well known within their communities and are often introduced to borrowers through friends or family members. They are unregulated and give loans with no paperwork, adding high charges. They can resort to threats, intimidation and even violence if repayments are not made.
Unauthorised lenders do not complete affordability checks on borrowers, often meaning they are lending to people who cannot pay them back. These borrowers do not have the protection of consumer law such as cancellation periods and the ability to apply for help if they can’t pay. This causes huge amounts of stress and can impact their other finances, leaving them unable to pay rent or other priority bills.
The warning signs of an illegal lender include:
- Giving you no paperwork or agreement on a loan
- Refusing to give you information about the loan
- Keeping items until the debt is paid such as your bank card or passport
- Taking things from you if you don’t pay on time
- Adding more interest or charges so the debt never goes down
- Using intimidation or violence if you don’t pay
Anyone who has been affected by illegal money lending should call the Stop Loan Sharks 24/7 helpline on 0300 555 2222 or access support online at www.stoploansharks.co.uk. There is a Live Chat facility on the website, and the team can also be contacted via WhatsApp on 07700 102773. The Live Chat and WhatsApp services are monitored from 9am to 8pm, Monday to Friday.
