Helpline to Protect From Loan Sharks

A new helpline has been launched in Wales by Social Justice Minister, Dr Brian Gibbons, aiming to help protect people from illegal money lenders.

The helpline has been set up by Cardiff Trading Standards in partnership with the Wales Heads of Trading Standards, and is part of the All Wales Illegal Money Lending Unit - a team of trading standards officers who help people having problems with illegal money lenders throughout Wales.

Although the hotline is primarily targeted at individuals, Trading Standards also says that there may be some Welsh businesses and sole traders who have been victims of loan sharks.

The Minister said the service is a further step forward in the battle to get loan sharks off the streets by helping to create a climate in which victims can come forward without fear of reprisals.

Dr Brian Gibbons said: "We know that many people on low incomes simply can’t access affordable sources of credit and are often forced to seek out expensive alternatives – from doorstep lenders to pawnbrokers to illegal loan sharks. These 'lenders' often charge extortionate rates within an environment of intimidation and violence.

Accessible financial and debt advice and affordable credit and loans are two of the five core themes of Wales’ first Financial Inclusion Strategy which the Assembly Government is developing over the coming year".

The Minister also stressed the importance of credit unions in combating financial exclusion and offering a real alternative to doorstep lenders and loan-sharks.

He continued: "Credit unions provide opportunities for savings and budgeting advice as well as access to affordable credit and basic financial services such as insurance.  Since 2000 we have invested £1.5 million in developing a strong and sustainable movement. We now have 33 active credit unions covering most of Wales and with our continuing support I believe national credit union coverage will soon be a reality.

For further information please contact the Helpline on Tel: 0300 123 3311.