Leeds loan shark told to pay £6,000
A 60-year-old Leeds man who acted as a loan shark, lending thousands of pounds over a six-year period, has been ordered to pay £6,000 by a court.
Richard Darcy, of Crescent Towers, appeared at Leeds Crown Court on Thursday, August 15, after admitting illegal money lending between June 2017 and November 2023.
The investigation followed a report to the England Illegal Money Lending Team (IMLT) that he was lending money illegally. The case was prosecuted by the IMLT in partnership with West Yorkshire Trading Standards and West Yorkshire Police.
Mr Simon Mortimer, prosecuting on behalf of the IMLT, said Darcy never had authority to lend money from the Financial Conduct Authority and was therefore acting illegally.
IMLT officers, together with officers from West Yorkshire Police executed a warrant at Darcy’s home in November 2023. Financial investigations showed Darcy had three income streams; selling furniture, a part time job and income from the lending of money. He was found to have issued loans in the region of around £8,000.
Darcy said he had only lent to people who were desperate and in need of essential items such as washing machines or children’s clothing.
He said he had researched the FCA website and was aware that he required authorisation to continue lending money legally but as it was not a straightforward process, he chose to ignore this and continue anyway.
Passing sentence, Judge Tom Bayliss KC said the lending was a means of making money. He said: “You’re not a vicious loan shark but you were illegally lending which is exploitative, lending to people who likely couldn’t get money elsewhere.”
He fined Darcy £6,000 with an order that it must be paid within three months, or he could face a prison sentence.
Speaking after the hearing, acting head of the IMLT, Dave Benbow, said: “This is a case where the lender made out that he was doing people a favour, offering loans in times of need.
“This is a classic approach when it comes to illegal lenders. They will often appear to be a friend, but later things can turn sour. We are pleased with this sentence today and we hope it sends a message that we will not tolerate illegal lending of any kind.”
There are up to 1.08 million people in debt to loan sharks in England, according to figures from the Centre for Social Justice (CSJ).
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
- Pretending to be a friend at first, but then using intimidation or violence if you don’t pay
This year marks the 20th anniversary of the IMLT. Since its launch, the team has supported over 31,700 people and written off over £91.3 million worth of illegal debt, securing over 420 prosecutions for illegal money lending, leading to over 600 years in jail.
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. Live Chat is available on the website from 9am to 5pm, Monday to Friday.
