Lancashire's social media users warned loan sharks are targeting potential victims through the internet
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Loan sharks are increasingly using platforms like Facebook, Instagram and Snapchat, to advertise illegal loans and target potential victims.
Around 3,000 Lancashire households are believed to owe money to loan sharks, according to estimates.
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Hide AdLenders quickly trap their borrowers into spiralling debt, and as the debts can’t legally be enforced many lenders will resort to the most extreme and callous methods to enforce repayment.
Paperwork is rarely offered so victims are often in the dark as to how much they are actually paying.
In some cases loan sharks add exorbitant extra amounts and interest of up to 131,000% APR, and have been known to take items as ‘security’ including passports, driving licences and bank or post office cards.
The IMLT has launched an online campaign called #SharkFreeSurfing, aimed at tackling illegal money lending on the internet.
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Hide AdTony Quigley, head of IMLT, said: “We are aware that loan sharks are becoming more active on social media, particularly in community groups and on local selling pages, which we will not tolerate.
“People throughout our communities are struggling financially due to the pandemic, and the increased pressures to not only meet monthly bills, but also the added expense of Christmas, may make them more at risk of being targeted by illegal money lenders.]
If you suspect someone may be operating illegally call the Stop Loan Sharks Helpline on 0300 555 2222.
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