Credit, collections & insolvency news
National debt advice agency PayPlan has announced it has joined forces with the England Illegal Money Lending Team (IMLT) to warn people about the dangers of borrowing from loan sharks in the run-up to Christmas.
The IMLT is a national organisation, hosted by Birmingham City Council, that was set up 20 years ago to investigate and prosecute loan sharks and support borrowers.
Over the past two decades, it has supported over 32,000 people and successfully prosecuted 427 loan sharks, seeing custodial sentences totalling more than 609 years handed out by the courts. Over £91.3 million of illegal debt has been written off.
Dave Benbow, Acting Head of the IMLT, said “PayPlan is a frontline organisation that reaches thousands of people every year and may well come into contact with people who have been targeted by illegal lenders. We rely on organisations like this to help us make sure we are reaching the people who need our help and we are hugely grateful for their support.
“The run up to Christmas is an expensive time and it can leave many people in a vulnerable position financially. We know this is a time when illegal lenders can strike and the help that PayPlan are offering to make people aware of the help available is invaluable.”
Emma Gibbons, Vulnerability Lead at PayPlan said: “Christmas can be a time when people are more vulnerable to loan sharks, and we want to make sure any of our clients who may be in this position get the help and support they need.
“From time to time we do some across people who may have borrowed from illegal lenders. If a lender is not authorised, they don’t have to follow the rules that are there to protect borrowers, particularly if they get into difficulties making repayments.
“We can offer people help to get out of debt, but if they are in this situation they may need more specialist help from the Stop Loan Sharks team. They can help the individual and ultimately remove these illegal lenders from communities, making everyone feel a little bit safer.”
