Combating Loan Sharks
Borrowing money from Loan Sharks is a very risky business, especially if you find yourself in a position where you cannot make your repayments. Loan Sharks do not believe in sympathising with your situation; they want there money and will do whatever it takes to get it.
In an attempt to put a stop to Loan Sharks, a project called ‘The Illegal Money Lending Project’ was launched in September 2004. Birmingham City Council set up operation in the Midlands and Glasgow set up operation in Scotland. The aim of the project was to:
Establish whether there were loan sharks operating
Bring them to justice through prosecutions and/or ensure complaince with the legislation
Where loan sharts were prosecuted: to promote those penalties to act as a deterrent for potential loan sharks
Where loan sharks were removed from an area: to fill the vacuum created with appropriate and alternative methods of legal money lending.
Since the project began, 27 defendants have been reported for lending money illegally and prison sentances have reached a total of 10 years for illegally lending money, and a total of 10 years for possession of fire arms!
The project has also reduced crime as some of those who borrowed money from loan sharks found themselves committing crimes to enable them to pay the loan shark as well as putting food on the table.
It has also been necessary on occasion to put people in witness protection programmes for their own safety.
Launching of projects in other cities is now a key part of the Governments Financial Inclusion Strategy and the Treasury now funds the projects.
Any information given over to the project is done in the strictest confidence. The introduction of a confidential 24/7 hotline has been introduced for the help and support of those in need. The number is 0121 693 1122. Any further information can be obtained by contacting Birmingham City Council.
Written by tani on August 8th, 2007
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