Loan sharks could become bigger problem because of Christmas

There are concerns amongst industry officials that problems relating to unlicensed and unregulated loan sharks could get worse as a result of the festive season and the current financial climate. Many people have struggled to get finance such as loans, credit cards, and overdraft, for the past couple of years due to the financial crisis, and with Christmas around the corner money will be tighter than ever leading to increased desperation for many.

 

The lack of finance availability for many people has resulted in many vulnerable consumers turning to other measures such as doorstep lenders and loan sharks, and this is something that has already been causing concern for officials. Whilst doorstep lenders charge a lot of interest they do not cause as much concern as loan sharks, as these are not even licensed lenders and have been known to swindle borrowers, resort to violence to get their money, and more.

 

Authorities are now continuing to urge consumers to steer clear of loan sharks no matter how desperate they get, as taking money through an illegal loan shark will not only financially crippling but could actually end up ruining the lives of people who get caught up with some loan sharks who will resort to anything to get their money.

 

Officials are also worried that with Christmas coming up more struggling consumers could end up turning to these sharks, and could put themselves in financial and physical danger as a result of this. Many people do not have any savings to spend on Christmas, and reports have shown that there are many consumers that are unable to raise even £200 to cover the cost of Christmas gifts and other purchases, which would increase the chances of them turning to less reputable lenders and illegal lenders.

Tags: loan sharks, finance availability, loan, GBP, credit, measures, authorities, climate

Equifax: Be ‘cautious’ about ID fraud

Consumers should be more wary of people trying to steal their identity details, an expert at Equifax has advised.

Neil Munroe, external affairs director at Equifax, said that an individual’s personal credit profile could be worth “several times more” than their maximum limit on their credit card.

According to CIFAS, the total number of fraud cases the organisation received by the end of the first quarter of 2008 was 52,286, which represented an increase of ten per cent compared with the same period in 2007.

The number of occurrences which involved a fraudster impersonating someone in order to takeover their bank account were up by 146 per cent.

Mr Monroe commented that the authorities should also make an effort to combat the issue: “There is a list of precautions that individuals should take but it’s not just an individual’s fight, it is a combined fight and the government need to be doing more around it and so do companies.”

Tags: Financial services, list, end, quarter, first quarter, Cifas