Kent Trading Standards say loan sharks exploit dearth of cheap loans
The head of Kent Trading Standards has said that borrowers are reluctant to report loan sharks to the local authorities.
People who provide consumers with cheap loans are escaping punishment for unscrupulous business dealings because victims are afraid to step forward, reports Kent News.Intimidation tactics have meant that, in the last year, Trading Standards has failed to successfully convict a single loan shark in the Kent area.
Ian Treacher, the head of Kent Trading Standards, has revealed that the latest trend is the consequence of people being too frightened to report incidents to the authorities.
In addition, Mr Treacher explained that some people are too embarrassed to concede that they are financially struggling.
He told Kent News: "At the moment, because of the economy, it is not as easy to get loans from high street banks.
"This means people may go to loan sharks to borrow money - there is no legal contract and it may seem like a quick way to get money.
"But because there is no legal contract, the loan sharks use fear and intimidation to ensure they get paid," he added.
Loan sharks, who are usually associated with other criminal activities, demand extortionate interest rates on loans.
As a consequence, the borrower is often unable to repay the loan in its entirety.
The loan repayments provide the so-called loan sharks with a regular stream of income and, when payment deadlines are missed, the sharks often employ intimidation tactics.
The Financial Service Centre recently claimed families are entering in to agreements with loan sharks because high street banks are unwilling to lend money, according to BBC News.
Further to this, the report claimed that some loans had interest rates as high as 1,500 per cent.
Posted by Kevin Shield
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