Loan sharks ‘a continuing problem’

Loan sharks profiting from people in lower income communities are a continuing problem in the UK, it has been claimed.

A spokeswoman for National Debtline said that the helpline they operate receives requests for advice from people indebted to loan sharks on a daily basis.

Beccy Wilks, press officer for National Debtline, commented that projects aimed at tackling the problem are going well, “but we do need to see more done along those lines”.

She said that mainstream lending facilities often aren’t an option for low income borrowers, who sometimes have a poor credit rating or cannot prove their income.

Doorstep issuers will also lend for small amounts that a mainstream loans company would not find commercially viable, she added.

In related news, the government is providing £47.5 million to run a two-year programme which will supply face-face debt advice.

The Department of Trade and Industry providing £1 million a year in funding to National Debtline.

National Debtline is a national telephone helpline for people with debt problems in England, Wales and Scotland.

© Adfero Ltd

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