The Office of Fair Trading (OFT) is joining a campaign which warn people of the dangers of loan sharks.
As part of the ‘Stop Loan Sharks’ campaign, the OFT and the Trading Standards Illegal Money Lending Teams have released a new video urging people to report loan sharks, and will be distributing around 200,000 leaflets and posters throughout England, Scotland and Wales.
There are an estimated 165,000 households in the UK using illegal money lenders, with half of these in the most deprived areas of the country . Particular loan shark hotspots include Scotland, the North of England and the West Midlands.
Anyone lending money should have a consumer credit licence from the OFT. Licensed lenders have to comply with legal obligations in dealing with customers, including the use of proper paperwork and fair collection methods.
Ray Watson, director of the OFT’s Consumer Credit Group, said: “If you’ve borrowed money from a loan shark you haven’t broken the law
