A 38-year-old man was arrested on suspicion of illegal money lending following an operation in Washington, Tyne and Wear, early this morning.
The England Illegal Money Lending Team (IMLT) worked in partnership with officers from Northumbria Police to execute a warrant at an address in the Donwell area.
Officers seized a mobile phone and paperwork and the suspect was taken into custody to be questioned by IMLT investigators.
The IMLT works in partnership with Sunderland Trading Standards Service to investigate and prosecute illegal money lenders.
Dave Benbow, head of the IMLT, said: “Illegal money lending will not be tolerated in our communities. They target the vulnerable and cause misery and devastation.
“If you have been offered a loan, been threatened when you couldn’t pay, had your bank card taken from you as security or if what you owe keeps growing even though you are making payments, then you may have been targeted. If this sounds familiar, or you are worried at all, please 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, adding extra charges and interest.
They can resort to threats, intimidation and even violence if repayments are not made.
They do not complete affordability checks on borrowers – often meaning they are lending to people who cannot pay them back. 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.
