Anti loan shark scheme welcomed
January 25, 2007 by admin
Filed under News, News-Loans
A new scheme to tackle loans sharks has been welcomed by the National Consumer Council (NCC).
The organisation is hopeful that by introducing the project, around 200,000 of the UK’s poorest people will receive help.
Hopes have been raised that some of the most vulnerable people will now be able to escape the vice-like grip of illegal lenders.
“Removing illegal lenders from these communities not only frees their victims from threats and intimidation, but can help people find ways to borrow more cheaply,” said Claire Whyley, deputy director of policy at NCC.
“It’s vital, though, that these new projects are supported by efforts to make more affordable credit widely accessible in poor communities.”
Large numbers of people turn to loan sharks because they have such a bad credit rating that they feel they will not be given a loan by a reputable lender.
However, loan sharks are not restricted by regulation and often charge extortionately high interest rates.
As a result, many borrowers find themselves in an even worse financial situation than before they borrowed the money.
