Help for Leeds people preyed on by illegal lenders

More funding to boost the fight against 'lowlife' illegal loan sharks who drive people into years of debt has been welcomed by the city's credit union.
HELP: Low cost loans and debt advice is available.HELP: Low cost loans and debt advice is available.
HELP: Low cost loans and debt advice is available.

The government announced that £5.5m would be spent nationally on the investigation and prosecution of illegal lenders, and to support their victims.

A further £100,000 in cash already seized from loan sharks will be spent encouraging people at risk of falling foul of dodgy lenders to join credit unions, which offer affordable loans and savings plans.

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More than 300,000 people are said to be in debt to illegal money lenders in Britain.

Leeds City Credit Union already works with law enforcement agencies to offer debt advice to people targeted by the crooks.

Its Chief Executive Chris Smyth said: “Leeds Credit Union already works closely with the government’s illegal money lending team to stamp out loan sharks in the Leeds region.

“Leeds Credit Union is pleased that in making their announcement, the Government recognises the valuable role of credit unions in providing affordable loans that are an important alternative to illegal and high cost loans.”

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Leeds City Credit Union has around 36,000 members and is among the biggest of the financial cooperatives in the UK.

The new funding was announced yesterday by John Glen, economic secretary to the Treasury.

He said: “These nasty lenders are nothing more than lowlife crooks taking hard-earned cash from the pockets of the most vulnerable.

“Over 300,000 people are in debt to illegal money lenders in the Britain and they need to know that we’re on their side.

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“That’s why we’re taking the fight to the loan sharks and spending more than ever to support their victims.”

The government said the funding for Britain’s illegal money lending teams represented a 16 per cent increase on last year.