Loan Shark Warning Coming Up To Christmas, So Be Alert
Loan Shark Warning Coming Up To Christmas – Loan sharks are identified as an emerging risk this Christmas and continuing into the New Year of 2016.
The Trading Standards Illegal Money Lending Team is concerned that families whose budgets are stretched could be at risk from loan sharks when they are refused credit elsewhere.
Loan shark loans online benefit from those on a low income who could struggle to have credit via other means.
Research reveals that 20% of people expect to find themselves in debt due to Christmas spending, leading to more individuals being at risk from loan sharks this festive season.
The Which? Survey of 2,056 UK adults also found that 40% of people are expecting to spend more than they’d intended to this Christmas.
Christmas puts pressure on household budgets
The Illegal Money Lending Team has proposed that the threat of loan sharks this year could come from the combined effect of the limitation on payday loans as well as the introduction of the Universal Credit single benefit restriction.
With increased pressure on family budgets over Christmas and in the new year, specialists at Trading Standards fear that loan sharks will prey on those in tough financial circumstances.
Tony Quigley from the NTS Illegal Cash Lending Team said: ‘As people get used to budgeting underneath the new system and find it more difficult to obtain valid short term loans, we expect many to be tempted into the arms of the sharks.”
‘ This is just not a course that is recommended as folks can find themselves in far more debt and coping with some pretty ruthless individuals.’
How exactly to spot a loan shark
There are a couple of signs to look out for to assist you to spot a potential loan shark. A loan shark might:
- Offer little or no paperwork, including a licence, credit record or arrangement of payments
- Refuse to give how much you still owe or information like the rate of interest
- Take things as security, including passports, driving licences or bank cards
- Raise the debt or add additional amounts or fees and charges to it
- Not permit you to settle your debt
- They may resort to threats, intimidation or violence.
Any of the loan lenders we advertise on this website are approved and registered by the Financial Conduct Authority. Some lenders invite applications from people with all credit types, low incomes, etc. and we have a door to door loan company that will bring the cash to your doorstep too.
Is there such a thing as Legal Loan Sharks?