Don’t get bitten by a loan shark

Shark

As the recession bites hard, loan sharks are sinking their teeth into people every day – don’t let their next victim be you!

A loan shark is anyone who lends money without a licence from the Office of Fair Trading (OFT), and they can make life very difficult for anyone who borrows from them.

Loan sharks tend to offer cash loans without any paperwork to make it more difficult for their customers to keep track of how much they owe.

And because loan sharks charge giant interest rates, their customers can find themselves unable to pay back their loans, which can lead to threats and violence. Some borrowers have reported being charged interest rates as high as 117,000%!

Please don’t turn to loan sharks if you need to borrow this Christmas – instead, the Manchester Credit Union offer a far less costly alternative, with a wide range of financial services, including affordable loans and savings.

You can also access their services at our offices:

  • Monday – Cheetham Hill Office, 2-3pm
  • Wednesday – White Moss Road Office, 2-3pm
  • Friday – Monsall Street Office, 2-3pm

Contrary to popular belief, anyone who takes out a loan with an illegal lender is not breaking the law - the only lawbreaker is the loan shark.

You can find out whether a lender has an OFT licence by visiting the Consumer Credit Public Register. It's free to carry out a basic search - just call 020 7211 8608.

The Government has also set up a national helpline to advise people who have borrowed money from illegal lenders - telephone 0300 555 2222, or text 'loan shark' and your message to 60003 for confidential help and support.

Expert advice is also available from the Council's Trading Standards office. Remember that any local shark who threatens or uses violence is breaking the law - contact the police immediately.

To find out more visit: http://stoploansharks.direct.gov.uk.

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