First raid on suspected Bristol loan shark

Release Date:  03-Jul-2008

The new South West Illegal Money Lending Team made their first major bust in Bristol of a suspected loan shark yesterday (Wednesday) evening.

The alleged loan shark is believed to have been operating for a number of years. A call to the new Loan Shark Hotline - 0300 1234 247 - which only went live last month, gave the team enough information to begin investigations.  Extensive enquiries then led to the execution of a search warrant on private premises in south Bristol by officers from the Illegal Money Lending Team. A 37-year old man was taken to a local police station and interviewed under caution and then released pending further enquiries.
 
Alan Evans, head of the South West Illegal Money Lending Team, says: “Thanks to a member of the public calling our hotline, we have been able to quickly investigate and swoop down on this suspected offender. Any information that people can give us - anonymously or otherwise - will help us to catch these unscrupulous loan sharks and stop them from taking advantage of people who can least afford it.”

Councillor Derek Pickup, Cabinet Member for Care, Tackling Deprivation and Crime, said: “Loan sharks are criminals who prey on vulnerable and desperate people. Our new, targeted Illegal Money Lending Team should give people who feel trapped and scared more confidence to speak out and help us put these criminals out of business. Removing loan sharks from the street and with them, the climate of fear they create, should also reduce the inevitable crimes and prostitution, helping to create better neighbourhoods everywhere.”

Illegal moneylenders, better known as ‘loan sharks’, often claim to be providing a community service, befriending people with debt worries and those in deprived areas.  Offered an apparent short-term lifeline, their victims are then likely to find themselves faced with extortionate interest rates or unachievable repayment periods. The penalty for non-payment can be intimidation, violence and even being drawn into crime or prostitution.
 
The team has been set up by Bristol City Council Trading Standards with government funding to cover the whole of the South West and forms part of a national campaign to tackle illegal money lending.  Led by Alan Evans, who has long experience in fraud investigation, the new team includes specialist and financial investigators and financial inclusion partnership officers. They are working with a wide range of partners to gather intelligence in order to take effective enforcement action against loan sharks and provide support to victims to remove their reliance on illegal lenders.
 

How do you know if someone is an illegal money lender?

A ‘loan shark’ is an unlicensed moneylender who operates outside of the law and without any financial regulation. They usually charge very high interest rates and sometimes use violence and intimidation to frighten people who can’t repay. They may also take their victim’s Benefit entitlement or other valuable items as security and may offer further loans leading to insurmountable debt.
 
 Legal moneylenders are regulated by the Office of Fair Trading (OFT) and must follow strict procedures and regulations enforced by Trading Standards. Anyone with any doubt about the legality of a money-lending offer, call the Consumer Credit Public Register on 020 7211 8608 Monday - Friday between 9.30am and 4pm.
 
There is no legal obligation to pay any borrowed money back to an illegal lender (ie. one unlicensed by the OFT). Anyone who has borrowed money in this way can call or text the new hotline on 0300 1234 247.
 

Where can I go for advice on legal borrowing?

People on a low income looking for legal borrowing options can contact Bristol Credit Union on 0117 924 7309. They provide a drop-in service on Mondays, Wednesdays and Fridays from 10am - 2.30pm at 112 Cheltenham Road.
 
Other organisations for free, legal help and advice include:
Bristol Citizen’s Advice Bureau - 0870 121 234  
Bristol Debt Advice Centre - 0117 954 3990 or drop-in Tuesday and Thursday mornings at 48-54 West Street, Bristol
National Debtline - 0808 808 4000
 
To report a Loan Shark you can call the SW Illegal Money Lending Team on 0300 1234 247 at any time.

Author:  Catherine Frankpitt / Vicky O'Loughlin t. 0117 922 3463

For all media enquiries relating to this press release, please contact Corporate Communications on 0117 922 2650.

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