Proposed Levy Charged to Tackle Loan Sharks
Levy charged to tackle loan sharks including loan shark loans online – Thousands of loan suppliers in the united kingdom will undoubtedly be asked to pay a levy to fund teams handling illegal money financing, the government has announced.
The Levy Charged
The levy on all consumer credit companies will pay for the teams, which are now financed through trading standards budgets. The teams in England and Wales have prosecuted some 300 illegal money lenders already. The levy will pay for their work from 2017 18.
“Illegal money lenders prey on some of the most vulnerable people in society, causing their victims massive misery” said Economic Secretary to the Treasury Harriett Baldwin.
“That is the reason we act now to ensure that illegal money giving teams have the capital they need to continue to protect consumers and prosecute loan sharks.”
Police investigating illegal cash lending in Wales and England have already procured rulings to write off more than £50m of debt that was illegal, the Treasury said.
Loan sharks panic
Chancellor George Osborne had formerly declared that he intended to make the payday lending industry help to purchase policing illegal money financing.
It is recognised that whole of the consumer credit business will have to pay the levy, not just payday lenders. The levy will be spent on tackling illegal money financing across Great Britain and also will be paid by consumer credit over the UK.
Concerns have been raised that the crackdown on payday lenders, who are controlled and licensed by the City watchdog, could result in some individuals being turned down for loans following affordability tests that were more stringent and turn to loan sharks.
Russell Hamblin-Boone, chief executive of the Consumer Finance Association, which represents several payday lenders, said: “The CFA and our members have for ages been supporters of the Illegal Money Lending Team. A levy administered by the Financial Conduct Authority funded from across the financial sector is the right strategy to use.”
Information gathered from the BBC News website.