Paisley Buddies urged not to turn to loan sharks in run up to Christmas
Paisley Buddies are this week being warned not to turn to loan sharks in the run up to Christmas.
The appeal has been issued by the Renfrewshire and national arms of Trading Standards who have found that loan sharks are adapting their tactics to prey on those who have been hit by the cost-of-living crisis.
The watchdog has even found cases in which these criminals have scoured the social media feeds of food banks in order to target the most vulnerable people in society.
READ MORE: 'Amazing' cholesterol-lowering ingredient doctor says is 'as effective as statins'
READ MORE: Man confesses real reason dogs are 'friendly' towards strangers on a walk
The Scottish Illegal Money Lending Unit (SIMLU) – part of Trading Standards – says research indicates that 300,000 people nationally are at risk from loan sharks – having either encountered them online or in their local community.
Fiona Richardson, chief officer of Trading Standards Scotland, said: “It is truly shocking that loan sharks are seeking to take advantage of the cost-of-living crisis by targeting people who are struggling to pay their heating bills and put food on the table.
“The Scottish Illegal Money Lending Unit has handled some terrible cases where people have been enticed into borrowing money only to find themselves threatened with violence when they cannot meet sky-high interest repayments.
“In the build up to Christmas, many people will feel under pressure to spend money, but the dangers of borrowing from unauthorised or informal lenders cannot be overstated.”
On average, loans from illegal lenders end up costing three times as much as legal loans. And while loans from community-based lenders may be seen as a quick solution for those in crisis situations, these lenders may not be authorised by the Financial Conduct Authority and could charge exorbitant interest rates.
Those who have fallen prey to loan sharks should not feel guilty or ashamed but seek out help, Fiona said.
“Our advice is to never borrow from a loan shark but if you have done or even if you are thinking about doing so, please come to us so our experts can help you,” she said. “SIMLU has been investigating and bringing illegal lenders to justice for 20 years, and the more people who report such crimes, the less chance there is of others falling victim.”
People can report their experiences through its online form or by calling its dedicated phone number.
The free and confidential helpline for those in financial difficulties is available on 0800 074 0878 and will remain open 24/7, including over the Christmas period.
The organisation is also advising people to look out for family, friends and neighbours who might have fallen victim to a loan shark – and to contact SIMLU on their behalf if they are worried.
SIMLU is part of Trading Standards Scotland and is funded by HM Treasury through the levy placed on authorised credit businesses by the UK Government.
Don't miss the latest Renfrewshire headlines – sign up to our free daily newsletter here