Cath WohlersCath Wohlers

LIAISE ManagerLIAISE Manager

England Illegal Money Lending TeamEngland Illegal Money Lending Team

The definition of a Loan The definition of a Loan SharkShark

Someone who lends money as a business Someone who lends money as a business (to two or more people) without having (to two or more people) without having the necessary licence:the necessary licence:

Typical characteristics Typical characteristics •No credit agreements givenNo credit agreements given

•No receipts for payment or payment booksNo receipts for payment or payment books

•Most payments are cash and weeklyMost payments are cash and weekly

•Violence and/or intimidation - threats Violence and/or intimidation - threats

•May suggest payments in kind to May suggest payments in kind to themselves or othersthemselves or others

•Often work alone or have a tight group of Often work alone or have a tight group of collectorscollectors

…….Typical characteristics .Typical characteristics

• Can take illegal securities e.g. cash cardCan take illegal securities e.g. cash card

• Never advertise – incentives for Never advertise – incentives for introducing a friend introducing a friend

• Communicate mainly in person or via textCommunicate mainly in person or via text

• Repayments of at least twice the amount Repayments of at least twice the amount borrowedborrowed

• May encourage the use of legal credit May encourage the use of legal credit options to pay towards the debt e.g. credit options to pay towards the debt e.g. credit union or crisis loanunion or crisis loan

Loan Sharks target

the most vulnerable

People are reluctant to

complain through peer pressure

People may have extended family

in area

The offence of unlicensed money lending

may not show trueExtent of criminal

activity

Victims are notaware of the

law regarding money lending

Other agencies are not aware

of the law regarding money lending

Victims feel morally obligated to pay back

The money they borrowed

Challenges

Addressing the issuesAddressing the issues

• Using the full weight of Using the full weight of the legislation available:the legislation available:

• Consumer Credit Act Consumer Credit Act 1974.1974.

• Proceeds of Crime Act Proceeds of Crime Act 2002.2002.

• Theft Act 1968 Theft Act 1968 ––Demanding money with Demanding money with menaces / Blackmail.menaces / Blackmail.

• Injunctions and anti Injunctions and anti social behaviour Orders. social behaviour Orders.

MM MM

• Ex British Commonwealth boxing champion Ex British Commonwealth boxing champion (Mike Armstrong) (Mike Armstrong)

• Business premises in Gym in Salford Business premises in Gym in Salford • Advertised in MEN/Local free papers as MAM Advertised in MEN/Local free papers as MAM

finance finance • Pleaded guilty to 3 Blackmail, 7 Criminal Pleaded guilty to 3 Blackmail, 7 Criminal

damage, 1 Affray and one Illegal lendingdamage, 1 Affray and one Illegal lending• Given 4 year sentence Given 4 year sentence • 900 victims across Greater Manchester 900 victims across Greater Manchester • Judge remarked ‘Attempted murder of the Judge remarked ‘Attempted murder of the

soul’ soul’

Loan Sharks and Financial Loan Sharks and Financial InclusionInclusion

• Source of IntelligenceSource of Intelligence

• Prevention is better than curePrevention is better than cure

• Victim referralsVictim referrals

• Community work and educationCommunity work and education

““Blair's ill-gotten gains Blair's ill-gotten gains are being ploughed back are being ploughed back into the community he into the community he preyed on”preyed on”79 new savings accounts opened

POCA – Play POCA – Play – “A Loan”– “A Loan”

Looking forward…….Our Offer Looking forward…….Our Offer to Partnersto Partners

• Enhanced TrainingEnhanced Training

• EventsEvents

• Action PlansAction Plans

• Publicity and PromotionPublicity and Promotion

• Community development modelCommunity development model

• Campaign Partner Campaign Partner

• Community AdvocatesCommunity Advocates

Key StatsKey Stats• Identified over 2,000 illegal lenders• Arrested over 525 illegal money lenders (loan sharks)• Written off over £40 million of illegal debts (money

victims would have paid back to illegal lenders if the Department had not acted)

• Secured over 200 prosecutions, resulting in prison sentencing totaling over 128 years and one indefinite sentence

• Helped over 18,000 victims of loan sharks including the most hard to reach individuals

• Seized over £1.5 million in cash• Over £27 million of assets are being investigated (under

POCA) with the intention of removing these from illegal lender

• Referred over 750 victims to alternate (legal) sources of financial support

• Trained over 5000 front line staff

Do you know a victim?Do you know a victim?

• Owe money to a friend?Owe money to a friend?• No paperwork?No paperwork?• Loan that just keeps growing?Loan that just keeps growing?• What you can do:What you can do:

– Pass the intelligence to usPass the intelligence to us– Support the individual to talk to usSupport the individual to talk to us– Arrange a meeting with a LIAISE Officer for a discussion Arrange a meeting with a LIAISE Officer for a discussion

about what support is availableabout what support is available

• Every piece of information can helpEvery piece of information can help• Anonymity, confidentiality, third party reporting, Anonymity, confidentiality, third party reporting,

what if?what if?

0300 555 22220300 555 2222

Text: loan shark + your message to Text: loan shark + your message to 6000360003

reportaloanshark@stoploansharks.gov.uk

www.direct.gov.uk/stoploansharks

Matthew Thubron Matthew Thubron LIAISE OfficerLIAISE Officer

07500 80934007500 809340

Matthew.thubron@birmingham.goMatthew.thubron@birmingham.gov.ukv.uk