Manchester City Council recently warned residents that illegal loan sharks would be preying on cash strapped Brits over the holiday season.
Unlike instant cash loan companies, a lot of illegal moneylenders do not give their customers any paper work so they are unaware of interest rates and additional charges for late payment. Sometimes they will take the borrowers passport as security for the loan. There have even been instances where they take a person’s bank card and PIN and then take money straight from the borrower’s account.
Despite a rapid increase in the number of short term loan companies in the UK, it has been estimated that around 310,000 households still turn to illegal loan sharks when they’re in need of money, and that figure was expected to rise by 20% as the festive season closed in.
Edward Davey, the consumer affairs minister, explained that loan sharks are criminals who set out to exploit vulnerable communities, conning their victims often through the use of violence and intimidation.
One Manchester woman ended up repaying £5,000 over 5 years for a loan of just £150. The shark that made this woman’s life a living hell was eventually prosecuted and sentenced to a long period in jail.
There are alternatives to loan sharks. Instant cash loans companies are one such solution. Providing you are able to repay the loan on time, these firms can provide the answer to your prayers in times of emergency.