The definition of a LOAN SHARK is an individual running an unauthorised business under the Financial Services and Markets Act 2000.

Transcription

1 What is a Loan Shark? Nothing to do with a high APR or interest rate Nothing to do with bullying or harassment It is to do with having a licence or NOT The definition of a LOAN SHARK is an individual running an unauthorised business under the Financial Services and Markets Act 2000.

2 Legal Loan Sharks It is a contradiction in terms These are NOT Loan Sharks: Wonga, Provident, Bright House They are licensed, legal and regulated companies who all have a Consumer Credit Licence. They have no cap on the interest rate that they can charge but they have to comply with regulations about telling people how much they charge and the way that they advertise.

3 The Illegal Money Lending Team Trading Standards initiative, began in 2004 Hosted by Birmingham City Council Before, over 20 years since loan shark prosecution! A dedicated, specialist team of 55 Investigators prosecute Loan Sharks LIAISE Officers raise awareness and provide victim support

4 The LIAISE Officer role is Giving victim support Providing in-depth training, attending team meeting talks/presentations Providing materials for community events Talking to vulnerable groups, service-users Inputting Illegal Money Lending into on your Financial Inclusion or Community Safety Strategy Distributing flyers and posters to raise awareness Writing newsletter or website copy Responding to new and changing trends Supporting Proceeds of Crime Act spend Working with you to target areas at risk Develop new ways of getting our message to your clients

5 The Enforcement side Prosecute Loan Sharks Manage the hotline 24/ All Investigators are from Police, fraud, Trading Standards and customs backgrounds Two seconded Police Officers Two financial investigators who use the Proceeds of Crime Act (POCA) An Intelligence Cell of four people

6 The intelligence cell Check if individual has licence Intelligence rated, operation given status of Bronze, Silver or Gold Operations with threat to life, violence and amount of corroborated intelligence prioritised Thorough intelligence checks carried out and assigned to Investigator s case-load

7 The hotline is open 24 hours a day Every single day Managed by Investigators, on a rota Can be anonymous Calls not recorded Is confidential Calls from a variety of individuals and agencies and text service too

8 Loan Shark trends No licence No paperwork - you owe me this much No receipts for payment Violence, intimidation and blackmail if repayments are missed Loans to anyone (under 18 s included) Take cash cards and other securities Rarely advertise, find clients by word of mouth Repayments of at least twice the original amount, often with high charges for defaulting

9 .Typical characteristics Can take illegal securities e.g. cash cards, passports Hardly ever advertise incentives for introducing a friend Communicate mainly in person or via text Repayments of at least twice the amount borrowed May encourage the use of legal credit options to pay towards the debt e.g. credit union or crisis loan

10 Loan Shark behaviours Building a client list through social networking the pub, schools gates, taxi rank... Can be claiming benefits whilst making a lot of money Frequently not paying any tax on their income Often involved in other criminality, and interest fuels capital for this Loan Sharks are getting smarter no longer just a scrap of paper or exercise book but well-hidden memory sticks...

11 Loan Shark profile Of our prosecutions, 80% male, 20% female The friend of a friend pay me back whenever The work colleague The advert in the paper The rented debt The community lender The lazy lender

12 And our victim profile Men and women equally likely to be victims; The male taxi driver The single mum The hospital worker The self-employed male The desperate The businessman The vulnerable

13 The IMLT schools package Materials for use in primary & secondary schools Designed to raise awareness in pupils of safer borrowing & money management Age 5 11 and (Key Stage 1, 2, 3, 4 & 5) Pfeg quality marked Written by teachers So far 4000 schools in England delivering

14 Why? Pupils will take the messages home to help their parents who may be in financial difficulties Prevent parents using illegal money lenders Enabling better decision making in the future Activity based

15

16 The IMLT needs you! Thank you for being here today Simply TALK about loan sharks Pro-actively ask people Help raise awareness, lots of free resource Colleagues/community champion talks Add information to what you re already doing; Newsletters,

17 IMLT achievements to date 310 prosecutions for illegal money lending and related activity Over 24,500 victims have been helped Over 59 million illegal debt wiped out Over 27 million worth of assets being investigated

18

19 The hotline is open 24 hours a day Every single day Managed by Investigators, on a rota Can be anonymous Calls not recorded Is confidential Calls from a variety of individuals and agencies and text service too