A 47-year-old West Bromwich loan shark has been jailed for 30 months after making thousands of pounds in profit by exploiting the ‘financially vulnerable’.
Philip Walter appeared before Wolverhampton Crown Court on Thursday, May 8 after admitting illegal lending and money laundering charges.
Passing sentence, Judge Simon Ward told him that he was a loan shark who caused ‘human damage’ to the vulnerable people he targeted.
The court was told he didn’t use violence or direct threats, but Judge Ward said: “There will be some people for whom the snowballing of interest is as frightening as having their leg broken.”
He said it was effectively stealing from people by charging interest and told Walter: “These are people that were absolutely desperate and thought that borrowing money from you was their only way out. When you did lend them the money, they had to pay you back at a rate way above anything that was appropriate or reasonable.”
He added: “The whole point of prosecuting people like you is to stop people like you causing damage to the vulnerable and desperate.”
The case was prosecuted by the England Illegal Money Lending Team (IMLT), working in partnership with Sandwell Trading Standards and West Midlands Police.
Mr Joseph Millington, prosecuting on behalf of the IMLT, told the court that Walter ran his illegal lending operation over a period of around six years, lending more than £375,000 to 58 people and receiving over £515,000.
Walter had no authorisation from the Financial Conduct Authority to lend money legally.
A warrant was executed at Walter’s home in Beeches Road West Bromwich in October 2023, following an investigation by the IMLT.
When he was arrested, Walter told IMLT officers: “I’ve got loads of money, people know I’ve got loads of money, so I lend money.”
Mr Millington said one borrower who used to work with Walter and considered him a friend initially borrowed £300 and had to pay back £450. Another borrower, who never met Walter, said he would add £50 a week if repayments were missed. A third said she felt scared of Walter.
Judge Ward said even though there were no allegations of violence, he had to consider the level of harm borrowers suffered by feeling scared and intimidated.
In defence, the court heard Walter had suffered from mental health problems, was working and had a partner and children. He started lending after being in debt himself.
Walter was sentenced to 22 months in jail for the money laundering offences and eight months for illegal lending, to run consecutively, giving him a 30-month total sentence. There was no order for costs.
Speaking after the hearing, head of the IMLT, Dave Benbow, said: “This was a clear case of someone who acted as though he was doing people a favour by lending them money, when in fact he was trapping them in a cycle of debt.
“He was running a profitable business, making money from other people’s misfortune. Even though there were no allegations of violence or direct threats, borrowers still felt afraid and intimidated. They had nowhere to turn for help when they couldn’t pay and felt trapped. We hope this sentence sends a message to others that illegal lending is a crime we will not tolerate in England.”
The IMLT is a national organisation hosted by Birmingham City Council. It was set up in 2004 to investigate and prosecute loan sharks and support borrowers.
Illegal lenders are unregulated and often give loans with no paperwork, adding charges and high interest. They do not have to 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.
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.
