Loan sharks cruising South Yorkshire for easy targets during the current credit crunch are being warned that a crackdown is being launched against their operations.
Minister for Yorkshire and Humber Rosie Winterton and Cllr Roy Miller, Chairman of the South Yorkshire Trading Standard Joint Committee, launched the initiative against illegal money lenders across the South Yorkshire Region at Barnsley Town Hall.
Stop Loan Sharks is a government-funded project that works with local authority trading standards services across the country. A team of highly trained investigators from the project will work with the four South Yorkshire local authorities - Barnsley, Sheffield, Rotherham and Doncaster - to track down loan sharks who prey on some of the most vulnerable people in the community.
As well as the crackdown, it is important that assistance and advice is available for those people already in debt, and that other forms of affordable credit are available - such as credit unions. It is proposed that links to all these agencies will be made available through the four South Yorkshire trading standards authorities’ websites to assist people in their fight against debt.
Rosie Winterton MP, Minister for Yorkshire and Humber, said:
"Illegal money lenders prey on the most vulnerable members of our community who are then overcome by debt and end up living in fear and despair.
"People often start by borrowing only small sums of money find themselves having to pay excessive amounts of interest and owing far more money than they ever dreamt of. They do not know where to turn and, as there is no legal way of collecting the debt, the lenders intimidate and often threaten violence to collect it.
"The Stop Loan Sharks initiative gives us the enforcement tools to deal with the rogue money lenders. Crucially, it also provides advice to people who need financial help. It is a good example of partnership between government and local councils and I congratulate all those involved in setting it up and those delivering it on the ground."
Loan sharks are associated with illegal weapons, smuggled cigarettes and counterfeit DVDs and other goods. The removal of loan sharks permits victims to manage their finances more effectively and often results in a drop in reported crime. The project has so far helped over 7,000 victims, secured more than 30 years’ prison sentences and written off £8million in illegal debt.
Cllr Roy Miller, Chairman of the South Yorkshire Trading Standard Joint Committee, said:
"I urge anyone who has a problem, or information about illegal money lending activities to call in confidence the 24-hour helpline 0300 555 2222." Alternatively, text "loan (space) shark (space) + Your Message" to 60003, or email stoploansharks@birmingham.gov.uk
Many organisations offer free help and guidance on money matters. Always get free, independent help before you pay a commercial service.
Doncaster Citizens Advice Bureau (CAB)
Doncaster Citizens Advice Bureau is a good starting point for free advice. They provide free information and advice on legal, financial and other problems. You can 'click here' for online information.
National Debtline
National Debtline offers free, confidential and independent help over the phone for people in England, Scotland and Wales. You can call their helpline on 0808 808 4000 (free for BT Customers) between 9.00 am and 9.00 pm from Monday to Friday and from 9.30 am to 1.00 pm on Saturdays (24 hour voicemail). You can also email and write to them.
Consumer Credit Counselling Service (CCCS)
Consumer Credit Counselling Service is a registered charity whose purpose is to assist people in financial difficulty by providing free, impartial and realistic advice. You can either call their free helpline on 0800 138 1111 or, alternatively email and write to them.
