A 60-year-old man was arrested on suspicion of illegal money lending following an operation in the Edgware area of north London early today.
The England Illegal Money Lending Team (IMLT) worked in partnership with officers from the Metropolitan Police to execute a warrant at an address in the Broadfields Estate area.
Officers seized a mobile phone, paperwork and a quantity of cash and the suspect was taken into custody to be questioned by IMLT investigators.
The IMLT works in partnership with Trading Standards services across England to investigate and prosecute illegal money lenders.
Dave Benbow, head of the IMLT, said: “Illegal money lending will not be tolerated in England, and we work with our partners to take action against those who blight our communities in this way.
“If you have borrowed money from someone you thought of as a friend, but who is now adding extra changes and making you feel threatened or afraid, they may be an illegal lender.
“If you, or anyone you know, has experienced any of these things or has any knowledge of illegal lending activities then contact our team in complete confidence.”
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
- Using intimidation or violence if you don’t pay
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, charging extortionate interest rates. They often 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.
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 from 9am to 8pm, Monday to Friday.
