Shropshire credit union sends out warning against online loan sharks

Steve Barras, Just Credit Union’s development officer, said The England Illegal Money Lending Team, which it works closely with, has launched a new campaign aimed at tackling illegal money lending on the internet and warning of the dangers of online loan sharks.

“This comes amid concerns that more people are falling prey to unscrupulous lenders online," he said.

"Loan sharks are increasingly using social media platforms, such as Facebook, Instagram and Snapchat, to advertise their illegal loans and target potential victims.

“Recent statistics provided by The Illegal Money Lending Team show one in five victims met their lender on social media and this is a worrying trend.”

The Illegal Money Lending Team, which investigates and prosecutes illegal money lenders and supports loan shark victims, is running the ‘Shark Free Surfing’ campaign this week.

Tony Quigley, head of the England Illegal Money Lending Team, said: “We are aware that loan sharks are becoming more active on social media, particularly in community groups and on local selling pages, which we will not tolerate.

“Loan sharks are using online platforms to advertise their predatory lending activities and target potential victims. People throughout our communities are struggling financially due to the pandemic and the increased pressures to not only meet monthly bills, but also the added expense of Christmas.

"This may make them more at risk of being targeted by illegal money lenders.

“We would always recommend that if people do need to borrow they talk to their local credit union about ethical financial products and services.”

Mr Barras said: “These criminals will lure people in with seemingly attractive loan offers, but will quickly resort to intimidation, threats and violence to enforce repayment and trap borrowers in a spiral of debt.

“We urge people to remain vigilant when online – if you spot a suspicious loan advert on social media report it to the Illegal Money Lending Team, and if you need to borrow money, always check the lender is authorised by the Financial Conduct Authority.”

During the week of the ‘Shark Free Surfing’ campaign Just Credit Union will be sharing information and advice on its social media and website at www.justcredit union.org

Mr Barras added: “We hope that the campaign will help encourage not just victims, but the wider community to report online illegal money lending activity.

"We will be sharing information that will help Shropshire residents spot the many different tactics used by loan sharks and hopefully avoid them becoming a victim.”

If you suspect someone may be a loan shark or they are acting inappropriately, you can report them anonymously to www.stoploansharks.co.uk or by calling the Stop Loan Sharks helpline on 0300 555 2222.

Alternatively, you can email the team at reportaloanshark@stoploansharks.gov.uk or access support via live chat on the website Monday to Friday between 9am-5pm.