Residents who are struggling financially are being urged not to fall victim to loan sharks.
Many people have been hit financially by the Coronavirus pandemic either through losing their jobs or living on reduced incomes, leading to difficulties making payments for rent, bills and necessities.
With financial pressures increasing around Christmas, some may see borrowing money from an unlicensed lender as a quick fix.
Bolton Council is supporting a national campaign by the England Illegal Money Lending Unit warning of the risks of falling victim to illegal lenders. This year’s campaign focuses on the problem of online loan sharks amid concerns more people are falling prey to unscrupulous lenders on social media.
Worryingly, one in five victims met their lender on social media in the first half of 2020 and there is a concern this will increase in the run-up to Christmas.
Bolton Council is urging anyone with financial worries to use their free Money Skills Service. The confidential and impartial advice service is available to anyone who lives in Bolton. They can help with issues like mortgage and rent areas, managing bills and budgeting as well as identifying any financial grants and assistance that is available.
Leader of the Council, Cllr David Greenhalgh said: “If you are having financial troubles, the worst thing you can do is borrow from a loan shark, no matter how bad your situation seems. We urge anyone struggling to access our services for advice and support.”
If you or someone you know needs financial help contact the Money Skills team 01204 33965, or email moneyadvice@bolton.gov.uk. Find out more about the Money Skills Service.
England Illegal Money Lending Team has the following advice for protecting yourself online:
Know who you are dealing with
If you’ve only ever met someone online or are unsure of the legitimacy of a lender, take some time to do a bit more research. Check the lender is authorised by the Financial Conduct Authority (FCA). If not, don’t borrow from them and report here.
Beware of loan adverts with no credit checks
Loan sharks have been known to advertise in community groups and on local selling pages. They may seem friendly and accommodating, but their behaviour can quickly change, and you might be harassed or threatened if you get behind with your repayments. Lenders must carry out credit checks to make sure borrowers can afford to pay back their loans. You should never hand over your bank details to strangers, even if they lure you with attractive offers. Remember, if it looks too good to be true, it probably is.
If you suspect someone may be a loan shark or they are acting inappropriately, you can report them anonymously here or by calling the Stop Loan Sharks Helpline on 0300 555 2222.