SHIREBROOK, U.K.–Authorities here are using funds seized from illegal “loan shark” lenders here to sponsor new credit union accounts.
Under a new program, the England Illegal Money Lending Team (IMLT) is working with 2 Shires Credit Union to raise awareness of illegal lending and prevent more residents from falling victim of one. The first 50 people to join 2 Shires Credit Union and save £5 per month for three months will be rewarded with £25 into their account in a bid to encourage Shirebrook residents to get into the habit of saving regularly and to prevent more people from having to turn to a loan shark to borrow in an emergency, according to the Nottingham Post.
Tony Quigley, head of service for the IMLT, told the Nottingham Post, "Loan sharks can have a horrific impact on our communities, and should never be used under any circumstances. We would urge residents to look at borrowing money from safer and legal alternatives, such as their local credit union.”
In the U.K., an estimated 310,000 households nationally are borrowing from illegal money lenders, according to authorities.