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Search forLoan sharks preying on Croydon credit crunch victims
Sunday, August 17, 2008, 07:00
Hard up locals are being warned the illegal money lenders – who can charge "way over 1,000 per cent" on loans - are looking to exploit customers as banks and building societies freeze them out.
Peter Richardson, who leads the London Trading Standards Association's Operation Sharkbait team who are sanctioned to crack down on the unlicensed traders, says loan sharks are known to operate in Croydon.
And he has urged anyone who falls foul of them to contact his staff directly to avoid crippling debts and physical harm.
He told the Advertiser: "The loan sharks manipulate the situation to get their money back.
"They use actual violence and threats of violence against the person, their family and children and criminal damage against their property.
"We have known instances of threats to kill and there have been suggestions that in some cases sexual favours are demanded."
Last week the Advertiser told how Richard and Jenifer Hollis had swindled almost £60,000 of benefits to fend off loan sharks.
They claimed the lenders had even propositioned Mrs Hollis for sex when they struggled to pay back their debts.
It appears their case is just the tip of a very large iceberg.
According to statistics from the Council of Mortgage Lenders (CML), the number of mortgage repossessions in Croydon has rocketed from 619 in 2000 to 1,703 last year.
Since 2000, the average house price in the borough has shot up from £148,000 to £259,000 - a rise of 75 per cent.
However, in contrast annual pay packets in Croydon have gone up far more gradually.
In 2000 the average resident took home £21,339 and last year that figure had only gone up to £25,751, a rise of around 20 per cent.
Alan Phillips, Croydon Council's trading standards manager, warned that loan sharks could take advantage of the borough's poorer residents.
He said: "Croydon has a lot of vulnerable people that loan sharks see as an easy target, not forgetting elderly residents who are struggling to pay their gas and electricity bills.
"Loan sharks have always been around, but today we are potentially moving onto the next level because people who could previously get a legitimate loan are being turned away."
Mr Phillips also warned that Eastern European loan sharks "who usually prey on their own kind" are known to be operating in the borough.
He said: "I would be particularly worried about areas like New Addington, Waddon and Thornton Heath, where social and economic deprivation is higher than in other parts of the borough.
"Anyone with financial difficulties should contact one of the local credit unions or the Citizens Advice Bureau, otherwise they could bitterly regret it."
Since Operation Sharkbait was launched in January this year, the team has identified more than 30 alleged loan sharks and arrested six people who are currently awaiting trial.
Although these alleged loan sharks are spread across London, Mr Richardson confirms "links" to the Croydon area.
He said: "No one wants cash for the sake of it. When people go to loan sharks they are desperate and probably trying to provide the best for their family.
"But too often they don't seek help because they have a sense of pride.
"We will help those people first by getting them out of the crisis, and secondly we will try to get the illegal money lenders behind bars."
*To speak directly to the Operation Sharkbait team call 020 7364 6886.
*Have you been the victim of a loan shark? If so call the Advertiser newsdesk on 020 8763 6666.
JUST SAY NO: The vulnerable are being warned to stay clear of loan sharks
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