Exeter carer acted as loan shark lending over £100K

A 47-year-old woman from Exeter has been convicted of acting as a loan shark and lending over £100,000 to at least 25 people. Reniba Mendoza lent money over a period of three years, charging interest, even though she was not authorised to do so by the Financial Conduct Authority.

Mendoza, of Pennsylvania Road, was given a 12-month community order with 300 hours of unpaid work at Exeter Magistrates' Court. The case was prosecuted by the England Illegal Money Lending Team (IMLT).

Simon Mortimer, prosecuting, said a report was made about Mendoza, a carer, to its helpline in January this year. She was arrested in April at her employer’s address, where she was living, and items were seized that indicated a money lending business.

READ MORE: Live: Exeter man wanted by police in connection to assault

READ MORE: Man denies four Exeter city centre sex assaults

Mr Mortimer said she confirmed she had been lending money, predominantly to friends at work, and charging an interest rate of around eight per cent a month. The court heard loan records showed 67 separate entries dating from April 2021 to April 2024

At least 25 different names featured with around 110 loans made. The combined value of the loans was just over £108,000 and Mendoza expected to collect at least £123,000 in repayments if all of the repayments had been made and she had not been arrested.

The interest rate generally applied was eight per cent, although some entries showed a lower rate. The interest was applied as a monthly rate on the outstanding amount until the capital was repaid.

In her defence, the court was told that Mendoza did not realise what she was doing was wrong and she was very highly thought of within the community and by her employers. She lent money within a limited social circle and a custodial sentence would have a detrimental effect on those she cared for.

Mendoza pleaded guilty to money lending when she was not authorised to do so. As well as the community order, she was told she must pay a £95 surcharge and a £3,500 contribution towards costs.

Speaking after the hearing, acting head of the IMLT, Dave Benbow, said: “Illegal lenders may appear to be a friend offering a favour, but they often target vulnerable people and the fact that they are unauthorised, leaves borrowers with no protection when it comes to repaying the loan.

“They may lend to people who cannot afford to pay them back and charge whatever interest they like. This leaves borrowers at risk of falling further into debt and can impact their other finances, leaving them unable to pay rent or other priority bills.

“We are determined to make sure illegal lenders have no place in our communities and we want to make people aware that there are other, safer ways to borrow, such as credit unions and CDFIs.”

Councillor Rufus Gilbert, Devon County Council Cabinet Member for Economic Recovery and Skills, said: “We're pleased to have worked with the England Illegal Money Lending Team (IMLT) and Devon and Cornwall Police on this case and we welcome the sentence delivered by Exeter Magistrates.”

Fakir Mohamed Osman, Head of Heart of the South West Trading Standards, added: “We will continue to liaise with other agencies to crack down on illegal lending. Borrowing from a loan shark can leave you trapped in a never-ending spiral of debt, impacting all aspects of your life, not just your finances.”

The IMLT, also known as Stop Loan Sharks, is a national organisation hosted by Birmingham City Council. It was set up 20 years ago to investigate and prosecute loan sharks and support borrowers.

Anyone who has been affected by illegal money lending should call the Stop Loan Sharks 24/7 confidential helpline on 0300 555 2222 or access support online at www.stoploansharks.co.uk. Live Chat is available on the website from 9am to 5pm, Monday to Friday.