New advice site to help Caithness residents affected by loan sharks
The Scottish Illegal Money Lending Unit (SIMLU) has launched a new dedicated advice site to support Caithness residents who are struggling to deal with loan sharks.
The unit has also expanded its network of organisations operating in communities which help residents to report illegal loan shark activity safely.
Throughout the pandemic, many illegal lenders have moved online, using social media adverts and messages to take advantage of those who are most vulnerable. Although loans from these online lenders may be seen as providing a quick solution for those in crisis situations, the lenders may not be authorised by the Financial Conduct Authority and could charge huge interest rates. On average, loans from illegal lenders end up costing three times as much as a legal loan.
The aim of the SIMLU charter mark is to create a network of organisations actively seeking to uncover and tackle illegal lending and, most importantly, to stop people from ever using loan sharks in the first place. The unit’s new website – www.stopillegallending.co.uk – has been established to provide dedicated advice and support.
Fiona Richardson, chief officer of Trading Standards Scotland, said: “I am delighted that Scotcash and Grampian Regional Equality Council have signed up to the Stop Loan Sharks Charter Mark. We have been working with Scotcash over a number of years to tackle the problem of illegal money lending and we have been working with GREC over the past year on a prevention project.
“If your organisation would be interested in signing up to the Charter Mark or if you would like more information, please get in touch. In a period of great financial uncertainty, it is important that we take all the steps we can to stop people from borrowing from loan sharks and getting trapped in a cycle of debt and intimidation.”
To find out more about the work of the SIMLU and to find organisations who can provide support and advice to those in financial difficulties, visit www.stopillegallending.co.uk or call the free and confidential 24-hour helpline on 0800 074 0878.
