Published: 28 February 2008
Help for Loan Shark Victims in Wales
A new helpline to help protect people from illegal money lenders in Wales has been officially launched by Social Justice Minister Dr Brian Gibbons.
The confidential hotline, 0300 123 3311, offers help & support to loan shark victims and their families.
It has been set up by Cardiff Trading Standards in partnership with the Wales Heads of Trading Standards and is part of the All Wales Illegal Money Lending Unit - an eight strong team of trading standards officers who help people having problems with illegal money lenders throughout Wales.
The Minister said the service is a further step forward in the battle to get loan sharks off the streets by helping to create a climate in which victims can come forward without fear of reprisals:
“We know that many people on low incomes simply can’t access affordable sources of credit and are often forced to seek out expensive alternatives – from doorstep lenders to pawnbrokers to illegal loan sharks.
These ‘lenders’ often charge extortionate rates within an environment of intimidation and violence”.
Accessible financial & debt advice and affordable credit & loans are two of the five core themes of Wales’ first Financial Inclusion Strategy which the Assembly Government is developing over the coming year.
The Minister stressed the importance of credit unions in combating financial exclusion and offering a real alternative to doorstep lenders and loan-sharks, saying:
“Credit unions provide opportunities for savings and budgeting advice as well as access to affordable credit and basic financial services such as insurance.
Since 2000 we have invested £1.5 million in developing a strong and sustainable movement. We now have 33 active credit unions covering most of Wales and with our continuing support I believe national credit union coverage will soon be a reality.
An additional £1.25m will be made available in the three years from April 2008 to help deliver our One Wales commitments on improving coverage across Wales; access for secondary pupils to credit unions and enabling more credit unions to provide child trust fund accounts.
I am pleased that we are hosting the official launch of the All-Wales Trading Standards’ Illegal Money Lending Unit and hotline today.
We will be working with the Unit and the Wales Co-operative Centre to identify how best we can ensure that affordable credit is made available in the areas where loan sharks are removed.
This will be a vital step in dissuading other illegal lenders to move in and take their place”.
Further information
WAG – Social Justice
WAG: A progressive agenda for the government of Wales
Cardiff Trading Standards
Wales Co-operative Centre – Credit unions
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