A 43-year-old man arrested in the Elm Grove area of Brighton on suspicion of illegal money lending has been bailed. How to spot a loan shark and get help.
A 43-year-old man arrested in Brighton on suspicion of illegal money lending and money laundering has been released on bail pending further inquiries, the England Illegal Money Lending Team (IMLT) said on Friday morning.
He was arrested early on Thursday 1 October, when IMLT investigators and officers from Sussex Police executed a warrant at an address in the Elm Grove area. Officers seized electronic devices, and the man was taken into custody to be questioned by IMLT investigators, according to the team’s press release.
He has not been charged. The team has not named him.
The IMLT, which is hosted by Birmingham City Council and covers the whole of England, works with Brighton and Hove City Council’s Trading Standards Service to investigate and prosecute illegal lenders in the city.
What the team said
Dave Benbow, head of the IMLT, said: “Today’s action forms part of our continued efforts to investigate reports of illegal money lending and protect communities from the harm it causes. Working closely with our partners, we will continue to take robust action against illegal lenders who profit from intimidation, fear and exploitation.
“Illegal lenders often take advantage of people who are struggling financially. Warning signs can include being threatened when you cannot make repayments, having your bank card held as security, or finding that your debt continues to grow despite making regular payments.
“If you have experienced any of these, or if you have information about illegal lending activity anywhere in the country, I urge you to contact our team in complete confidence. One call could help protect you, your family, or someone in your community from further harm.”
How illegal lenders work
The team says many illegal lenders are well known in their communities and are often introduced to borrowers through friends or family. They are unregulated, lend with no paperwork and add high charges, and can turn to threats, intimidation and violence when repayments are missed.
Because they run no affordability checks, the IMLT says, they often lend to people who cannot pay them back. Borrowers also lose the protection of consumer law, such as cancellation periods and the right to ask for help when they cannot pay, and the debt can leave them unable to cover rent and other priority bills.
The team cites Centre for Social Justice figures putting the number of people in England in debt to loan sharks at up to 1.7 million.
The warning signs
According to the IMLT, the signs of an illegal lender include:
- giving you no paperwork or agreement for the loan
- refusing to give you information about the loan
- keeping items such as your bank card or passport until the debt is paid
- taking things from you if you do not pay on time
- adding more interest or charges so the debt never goes down
- using intimidation or violence if you do not pay
Where to get help
The Stop Loan Sharks helpline is open 24 hours a day on 0300 555 2222. Support is also online at stoploansharks.co.uk, which has a Live Chat, and the team can be reached on WhatsApp on 07700 102773. Live Chat and WhatsApp are staffed from 9am to 8pm, Monday to Friday.
Anyone with information about illegal lending can contact the team in confidence through the same routes.
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