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Team attempts to deal with loan sharks

09/01/08

The Stop Loan Sharks team has commenced work in North Lincolnshire in the aim to try to cut down loan sharks in the area. With the current economic crisis and the recession looming over the UK, many individuals have decided to take advantage of the situation and set up loan companies offering loans with very high interest rates and many of which are illegal.

The Stop Loan Sharks team aims to set up a hotline number borrowers can call in to ask advice. The team will also be looking into those who are lending money illegally. Members of the team help borrowers who have been caught up in borrowing from loan sharks as they are unable to get a loan from other ways.

A spokesman for the Hull-based team said: "Loan sharks do not provide a community service, they prey on some of the most vulnerable people in society, causing unimaginable stress and sometimes physical harm to people who have limited finances,” commented A spokesperson from The Loan Sharks Team.

The spokesperson continued, “They often charge huge interest rates thousands of per cent. As 'debts' owed to loan sharks are not legally enforceable, they often resort to threats and violence to ensure payment.”