Why Leeds is stepping up its fight against illegal lenders targeting vulnerable people
Leeds joins forces in it fight against loan sharks
Leeds has stepped up its fight against loan sharks after dozens of organisations joined forces to sign a new charter pledging to tackle illegal money lending across the city.
The agreement bring together Leeds City Council, charities and frontline services to help protect residents from illegal lends who prey on insecurities and financial hardship.
Unlike legitimate lenders, loan sharks are not authorised or regulated by the Financial Conduct Authority (FCA).
They often offer quick cash with little or no paperwork, but the situation can quickly escalate. They may charge very high interest rates and use threats, intimidation or harassment if repayments are missed.
Around 60 organisations attended the event which was hosted by the England Illegal Money Lending Team (IMLT), also known as Stop Loan Sharks. All organisations signed a pledge committing to support the work of IMLT and help raise awareness of the dangers posed by illegal lenders.
Coun Asghar Khan, Leeds City Council’s executive member for housing and hubs, said: “This meeting was a valuable opportunity for us all to come together in our work to stop loan sharks, and it was great to share best practices, learnings and successes.
“Illegal money lenders target vulnerable people in our communities, people who are desperate and don’t realise who they are borrowing from.
“By signing this charter we are showing our commitment to combat illegal money lending and help people see the signs and get the help they need.”
Dave Benbow, head of the England Illegal Money Lending Team, said: "It was fantastic to see so many frontline organisations from across Leeds come together to support the fight against loan sharks and the work being done to keep communities safe.
"We know illegal lenders operate in local communities and are often well known. Many people don't even realise they have borrowed from a loan shark – they believe they've simply borrowed from someone they know or trust. Unfortunately, that can quickly lead to threats, intimidation and misery.
"Loan sharks target some of the most vulnerable people in our communities, causing financial and emotional harm.
Many of the organisations represented at this event will come into contact with people affected by illegal lending in their day-to-day work. By working together, we can help them spot the warning signs and ensure people get the support they need."