While lenders may offer what appears to be a quick-fix small loan, in the long term any money borrowed will come at a very high price. Remember, try only to borrow the amount needed and make sure it's from a reputable lender. Loan sharks are illegal lenders who exploit people who they know are struggling for cash.
It's risky business borrowing from an illegal lender, such as:
- high-interest rates
- harassment or threatening behaviour
- ever increasing debt
Credit unions are a safe and legal alternative, find out more about the services on offer locally at the Community First Credit Union, by visiting communityfirstcu.co.uk or calling 03 03 03 000 10. It's easy to check that a lender is licensed before considering a loan by visiting the consumer credit register online at fca.org.uk/firms/consumer-credit-register.
Cllr Jenny Platts, Cabinet Spokesperson for Communities, said; "No matter how desperate you are, loan sharks are never the answer. You can report these in confidence and action will be taken.”
“If you do need to borrow money, always make sure that it’s from a licensed lender and you borrow only what you need and can afford. Check the interest on the loan to make sure it’s a manageable amount and think about the long-term rather than quick-fix solutions. If you’re struggling with money worries or debt, you can contact the Citizens Advice Bureau for advice and guidance.”
If people know of or have borrowed money from an illegal lender, they can report them anonymously at gov.uk/report-loan-shark.
This news is linked to Town Spirit, our new way of working better together. We believe, that if everyone in Barnsley does just one thing, we can make our borough a more welcoming place to live, work, invest and visit.
#LiveIt helps us to support vulnerable people and focus our resources so they can access support at the earliest possible stage. #OwnIt by reporting anti-social behaviour and crime.