City Council takes bite out of loan sharks
Sunderland City Council has been recognised for its work helping residents to access safe financial support and protect them from illegal money lenders.
The council is the first in the country to receive a Stop Loan Sharks Partner Plus Award from the England Illegal Money Lending Team (IMLT).
The Centre for Social Justice estimates that around a 1.7 million people in England are currently borrowing from loan sharks— or almost three per cent of the population. Based on these estimates, there could be around 8,000 people accessing illegal lenders and their high lending rates in Sunderland.
Through a combination of awareness campaigns, partnership working and targeted initiatives, from social media to community work, the council is continuing to warn residents of the risks of illegal lenders and make people aware of the alternatives.
The City Council's Cabinet Member for Culture, Tourism and Heritage, Councillor Ciera Hudspith said: "When people are under financial pressure, it's essential they have access to safe and affordable options. Illegal money lenders take advantage of difficult situations and are not a quick and easy fix if people are worried about their bills.
"These loan sharks are not helping residents - they are exploiting them. This can have a devastating impact on individuals and families, and it's vital we continue to raise awareness of the dangers while making sure people know where to turn for support and safer alternatives.
"On behalf of colleagues and our partners across the city, we're proud to receive this Partner Plus Award recognising all the work that's helping to protect and remind people that there are other and much safer choices available than going to a loan shark."
The Partner Plus Award comes after the council signed the Stop Loan Sharks Partner Charter, a commitment from 36 organisations across Sunderland to work together to raise awareness of loan sharks, tackle illegal money lending in the city, and promote support for residents who have been affected.
A key part of the council's fight against loan sharks has been helping residents to improve access to affordable credit and savings options by highlighting alternatives such as credit unions.
Community events are also helping to raise awareness of loan sharks, including educational sessions for young people at the Sunderland Fans Museum.
Money seized from convicted loan sharks is reinvested locally, with £1,600 from the IMLT and a £500 council grant helping to fund new equipment at the Leisure United Football Hubs in Washington, Downhill and Ford.
Cllr Hudspith added: "These initiatives all combine prevention, education and engagement—helping residents understand the risks of illegal lending while connecting them to trusted and proven support."
Anyone affected by illegal money lending is also encouraged to seek help in confidence.
Dave Benbow, Head of the England Illegal Money Lending Team, known in communities as Stop Loan Sharks, said: "Sunderland City Council has shown a strong and ongoing commitment to tackling illegal money lending and supporting residents to access safe and affordable financial options. This award recognises the real difference their work is making in raising awareness and strengthening partnerships across the city. We are extremely grateful for the council's continued support and look forward to continuing our work together to keep communities in Sunderland safe."
A loan shark is an individual who lends money without proper authorisation from the Financial Conduct Authority (FCA). The FCA has rules in place to protect borrowers, but illegal lenders operate outside these regulations. They may appear friendly at first, presenting the loan as a favour, but can quickly add excessive charges and use threats, intimidation, or even violence to enforce repayments.
Warning signs of a loan shark include being given no paperwork or clear information about the loan, being asked to hand over items such as a bank card or passport as security, or being threatened or pressured into making repayments.
Anyone who thinks they, or someone they know, may have borrowed from a loan shark can access free, confidential and non-judgemental support from the Stop Loan Sharks team.
How to get support:
- Stop Loan Sharks 24/7 confidential helpline: 0300 555 2222
- Online: www.stoploansharks.co.uk
