Minutes:
A presentation on illegal money lending and loan sharks was given by Anna Fraser from the England Illegal Money Lending Team (IMLT). The organisation was set up in 2004 and was government funded. It’s main headquarters was based in Birmingham. They had 30 Investigators and 18 Liaison Officers, a Project Manager and a Press Officer. The objectives of the IMLT were:
· To obtain justice for victims of illegal money lending activities
· To provide witness support
· To provide financial advice
· To provide local based officers when required
· To focus on Communities
· To provide an understanding of the scale of the problem
· To reduce incidences of illegal money lending activity
· To address the issue of fear
· To change the perception so that the public could understand that these activities can be stopped and punished
· To support victims to access alternative sources of credit
It was highlighted that the difference between loan sharks and companies like “Wonga” was that loan sharks did not possess a consumer credit licence; this meant that their loans were not legal and not legally enforceable. The IMLT had their own resource, legal service, and seconded police officers with arrest powers. The IMLT was able to focus on community leaders and the “big players”. Very often, the initial investigations of the IMLT would uncover more serious associated crime such as drug dealing, violence and intimidation, blackmail, fire arms offences, rape and murder. The characteristics of illegal money lending were:
· No credit arrangements were given
· No receipt or payment books were provided
· Payments were normally weekly and in cash
· Violence and intimidation was common
· Payments were sometimes “in kind”.
· The loan sharks either worked alone or with a tight group of collectors
· No activities carried out that could easily be traced
Some of the challenges that the IMLT faced were:
· Victims often were not legally aware
· Other agencies were often not aware of the activities and the scale of the problem
· Victims often felt morally obligated to repay
· Problem not just confined to those on benefits, 80% of victims were employed
· Victims were reluctant to complain
· Lending often hid the true extent of associated criminality
· Loan sharks often targeted the vulnerable
· Loan sharks would often intimidate extended family
To address the problem of illegal money lending activities, the IMLT had recourse to legislation including the Consumer Credit Act 1974; the Proceeds of Crime Act 2002; and the Theft Act 1968. The team would also initiate prosecution for serious associated crimes as mentioned previously; they also had recourse to injunctions and ASB Orders. The IMLT could offer training and support to partners if required, and they could also arrange publicity and promotions. In terms of achievements, the work of the IMLT had resulted to date in prison convictions totalling 309 years, £42.3m of debt had been written off, and 23,000 victims had been supported. It was noted that Amanda Evans (in her new role of administering the Safer Neighbourhood Board) would organise community outreach days where the IMLT could present to communities. If anyone need help from the IMLT the contact details were:
0300 555 2222
Email: reportloanshark@stoploansharks.gov.uk
Text: loan (space) shark (space) and your message to 60003
Web: www.direct.gov.uk/stoploansharks
It was agreed that the content of the presentation be noted.