People who struggle to borrow money from high street banks or loan companies may be tempted to revert to borrowing from illegal money lenders such as loan sharks.
Loan sharks operate illegally and generally target vulnerable people such as those on benefits or young single women. People in desperate situations who have no other means of borrowing may use loan sharks as a last resort; however, do these people really know what they are letting themselves in for?
Recently, loan shark Kim Cornfield admitted illegal activity in his unlicensed operation by blackmailing and intimidating people who had borrowed from him. Cornfield claims he had around 75 clients, many of whom had taken our more than one loan.
Cornfield particularly targeted young women on benefits and would threaten them with violence and sexual intimidation to ensure he got his money. He was jailed for 2 years.
Cornfields wife, Lynne Cornfield was also involved in the illegal operation and was given a 12 month community rehabilitation order.
Victims of loan sharks are frequently subject to intimidation or violence. If you are currently struggling financially and considering using a loan shark, you are seriously urged to reconsider. There are other solutions available to resolve financial difficulties without the need to borrow more money, and especially without the need to borrow from illegal operations such as those like Kim Cornfield’s.
The DTI are looking into stamping out loan sharks, but because they run illegal operations, information can be difficult to come by.
If you have already borrowed from a loan shark company and experiencing any kind of blackmailing or intimidation, do not allow this illegal activity to continue. Contact your local Trading Standards Department as soon as possible.
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Source: Credit today
Written by tani on March 23rd, 2006
Filed Under Budgeting | Trackback | 8 Comments
Melody Peaten saysWhat other alternatives are there when in need of a loan in which you cannot obtain from a bank or lending company. I have about $12,000 in debt both personal such as a car loan as well as credit card debt. I have fallen behind in payments and have been turned down by virtually every lender that I have applied with. Do you have any suggestions?
Nicky saysHi Melody
I notice you said dollars rather than pounds? This would mean that you would be under a different debt law than we are in the UK, so unfortunately I wouldn’t really know where to point you.
What I would say however, is that if you are in a situation where you are finding it difficult to repay your debt, then instead of looking to borrow more, perhaps you could negotiate more affordable payments to your creditors. That way, your credtors are still getting paid, and you are able to live easier as you are only paying what you can afford?
On most occassions, you can’t borrow your way out of debt and its better to deal with the debt you have now rather than increasing it.
Sorry I couldn’t suggest any companies to you.
Kind regards
Family Finance Weblog saysLoans. Loan Sharks are alive and snapping.
According to the Competition Commission, there are still doorstep loan sharks patrolling estates and charging up to 1,000% interest per year for loans. The average is apparently, 177% per year! At last the Competition Commission plans to cull them.
jon sayshi, i am a 19 year old living in the UK, me and my girlfriend and my best friend are needing to move in together, as my mate is homeless, my GF will be homeless in a week due to her mum moving away, and i will be homeless shortly due to my parents splitting up, 2 of us are working including myself, so are easily able to rent a flat/house, but are completely unable to raise the deposit (approx £2000) in the amount of time we have, no loan companies will touch any of us due to the fact we are under 21, living with parents, and have been working for under a year, with no past credit, is there any way you can think of getting around this in our short amount of time, have tried a payday advance but neither of us have a cheque guarantee card…
Nicky saysHi Jon
Apologies for not spotting this sooner. I hope you managed to sort things out.
If you come back and see this post and you still have questions, then head over to Debt Questions. There is an online forum there with lots of people with great advice on all kinds of debt issues.
Kind regards
Nicky
Emma saysAs Melody has already said, What else can you do?
I applied for a loan and a 0% interest credit card & got refused, so i decided to look at my credit reports which is the advice you get from all companies etc. I got them, all details were correct apart from a few things which I have had amended. I have a few late payments but not many, no defaults, CCJ’s & I am on the electoral roll. Absolutely no one will give me credit & I am stuck as to what to do next!!
I am at the age now were I want to put things right, I realise my mistakes and want get those mistakes behind me and start planning & saving for the future. BUT I can’t because not one company will loan me any money and I dont know what to do.
I owe approx £15000 and at the moment am paying out most of my wages each month which leaves me with nothing save.
I have an exsisting loan with my bank which I have payed on time each month for the past 4 years and even they wont give me any more money! Why?
What makes the whole thing worse is that everyone around me has CCJ’s, defaulted accounts, late payments etc and they are getting more credit left, right & centre! All the companies I have applied with are telling me apply again in 12 months! I can’t wait that long.
You know what, I could go on & on! I just need some help as in what to do?
Jane saysHi Emma,
If you are struggling with your debts you should consider the alternatives rather than just consolidating your debts. Borrowing more money to cover existing debts is not always the best solution. If you are struggling to meet your contractual payments and have no money left out of your wages each month to live on then an alternative debt solution such as a free debt management plan or and IVA may be suitable. Contact Payplan for some free advice on 0800 917 7823.
Nicky saysHi Emma
It could be that creditors are not lending you money because they can see that you wouldn’t be able to pay it back comfortably?
Loan sharks is definately not the way to go regardless of your situation. If you are in a position where you are struggling to pay your debt, then as Jane said, you need to adjust the payments to your creditors so that you can repay them at amounts you can afford.
Payplan can of course help you with this.
It really just depends on what it is you are trying to do and why you want to borrow the money?
Debt Consolidation does work for some, but not others.
If you do have more questions, you could go to the Debt Questions forum or call the number provided by Jane, or of course post your questions here.
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