Recently SOFEA received a Partner Recognition Certificate from the Illegal Money Lending Team in acknowledgement of the work SOFEA’s done to make Community Larder members aware of loan sharks.
Over the course of a week, the Illegal Money Lending Team visited Community Larders in Westcroft, Waterhall and Coffee Hall as well as delivering a presentation to staff and beneficiaries at the local YMCA.
The aim is that by making Community Larder members conscious of the behaviours of loan sharks, they’d then be better equipped to refuse them and would source legal avenues to fund their expenses instead. To that end, the Illegal Money Lending Team has also partnered with Acorn Community Bank so they can offer alternative lending streams to prevent vulnerable people from resorting to loan sharks.
The Acorn Community Bank operates slightly differently when compared to other high street banks. Utilising a membership scheme with a £2 sign up, with £1 to be kept in your account at all times, for this, they offer incentives to encourage members to save. Additionally, they also offer loans to members who might otherwise be rejected by more conventional banks.
In addition to the services offered by Acorn’s Community Bank, the Illegal Money Lending Team works hard to educate people on the strategies used by loan sharks. Spotting behaviours like offering loans in cash, not giving the recipient any paperwork, including massively high interest or APR, making threats or demanding important documents from you like a bank card, benefit card or passport can all be signs that an individual is being exploited by loan sharks.
In an interview with BBC Look East, Tracy Pearson, SOFEA’s Milton Keynes Area Manager, said,
“We’ve had quite a few members across different [Community] Larders that have told us they have been caught out by loan sharks. They’ve been befriended by people, they’ve taken a small amount of money and paid back significant amounts which has impacted their family.”
Cath Wohlers from the England Illegal Money Lending Team, said,
“People are borrowing now for everyday expenses, so what we’ve seen in the last couple of years is a shift away from one-off expenses like a burst car tyre, a broken washing machine or Christmas towards food and fuel. People are literally borrowing from loan sharks to put food on the table and fuel in the metre.”
Following the Community Larder visits, and accompanied by Sid the Shark, the Illegal Money Lending Team came to SOFEA’s Milton Keynes site to present us with a Certificate of Recognition in acknowledgement of our continued partnership to raise awareness of loan sharks and their impact on local residents and their communities.
If you’re concerned that you, or someone you know, is being exploited by loan sharks, you can find information on what to do and how to get help on the Stop Loan Sharks website: https://www.stoploansharks.co.uk/