A Telford loan shark who was jailed for illegal money lending has now been ordered to pay more than £150,000 or face more time in prison.
Alvin Hutchinson, aged 55, of Telford, was sentenced to 28 months in prison back in December 2023 after admitting charges of illegal money lending and money laundering. The case was prosecuted by the England Illegal Money Lending Team (IMLT) in partnership with Telford Trading Standards and West Mercia Police.
Shrewsbury Crown Court heard at the time that he threatened and intimidated borrowers. He forced one to buy a 65in TV on credit, which he then used, leaving the customer struggling to make the repayments.
One borrower, who Hutchinson met in Wolverhampton, took loans of between £100 and £200 and was charged 40 per cent interest, but if the capital wasn’t paid off after a week, another 40 per cent was added. Another estimated at one point he owed £3,000, having only borrowed between £500 to £600.
Hutchinson was back before Shrewsbury Crown Court last week for a Proceeds of Crime Act hearing.
The court heard his available assets amounted to £158,901. He has three months to pay this to the court or face another two years in prison.
Hutchinson ran his lending operation between January 2015 and May 2019 but did not have the necessary authorisation from the Financial Conduct Authority (FCA). The IMLT launched an investigation and in 2019 executed a search warrant at his home in Hartley Close, The Rock.
Speaking after the POCA hearing, head of the IMLT, Dave Benbow said: “We welcome this confiscation ruling, which sends a clear message that this kind of crime doesn’t pay. Hutchinson made thousands of pounds by exploiting vulnerable people and it is only right that he should not continue to benefit from the money he made.
“Illegal money lending can destroy people’s lives, and we will continue our fight to stop these criminals. Some of the money confiscated in this case will be used to help in our work to combat the menace of illegal lending across England.
“We would like to thank the borrowers in this case for coming forward and we would urge anyone who thinks they have been targeted in this way to contact us in confidence for help and support.”
The IMLT is a national organisation hosted by Birmingham City Council. Since it was set up in 2004, it has supported over 31,500 people and written off over £91.6 million of illegal debt. Over 430 prosecutions have been secured for illegal money lending and related activity, which has resulted in custodial sentences adding up more than 600 years.
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. Live Chat is available on the website from 9am to 5pm, Monday to Friday.
