DORSET, U.K.–Wyvern Credit Union here has entered into a partnership with Dorset Trading Standards and the England Illegal Money Lending Team to help fight illegal money lending.
According to the Dorset echo, the aim is to encourage people to turn their backs on loan sharks and instead look to save for the future. To get the ball rolling, proceeds of crime, confiscated from convicted loan sharks, will be used in sponsoring new accounts with the credit union.
An estimated 310,000 households nationally are borrowing from illegal money lenders, many of whom charge exorbitant rates of interest to trap people into a spiral of debt, the Dorset Echo reported.
Many loan sharks will even resort to bully tactics, such as violence, threats or intimidation to enforce repayment.
Tony Quigley, head of the Illegal Money Lending Team, said: “Illegal money lenders can have a horrific impact on our communities, and should never be used under any circumstances.”
Added Rachel Bailey, manager with Wyvern Credit Union: “Wyvern Credit Union are the co-operative savings and loans organisation for Dorset and Somerset, a community based organisation, staffed by local volunteers. We will be working in partnership with the England Illegal Money Lending Team to encourage new members to join us, giving them a safe and ethical place to save and borrow. The first 50 members to join up during the promotion period will get a £25 bonus just before Christmas.”