Illegal money lenders are using social media to identify and target vulnerable people, the Scottish Illegal Money Lending Unit (SIMLU) has warned, with up to 300,000 people in Scotland at risk of falling victim to loan sharks according to the watchdog’s latest data.
SIMLU is highlighting the risks posed by loan sharks in the run-up to Christmas and is supporting victims with debt and welfare advice alongside ongoing enforcement activity.
Fiona Richardson, Chief Officer of Trading Standards Scotland, said: “It is truly shocking that loan sharks are seeking to take advantage of the cost-of-living crisis by targeting people who are struggling to pay their heating bills and put food on the table.
“The Scottish Illegal Money Lending Unit has handled some terrible cases where people have been enticed into borrowing money only to find themselves threatened with violence when they cannot meet sky-high interest repayments.”
In one case which SIMLU dealt with, a single mother was threatened with physical assault after borrowing £250 to buy a bed for her toddler son. When she couldn’t afford the £25-a-week repayments, the loan shark turned up at her door and threatened both her and her son.
She reported the case to SIMLU, which helped her find access to a food bank and provided debt advice along with other support.
Secretary of State for Scotland, Ian Murray, said: “I’d urge anyone who has fallen victim to the criminals peddling these illegal inflated loans to contact SIMLU so that they can get help and advice and also so these loan sharks can be stopped.
“We need to put a stop to criminals who prey on people who are struggling financially when they are at their most vulnerable.”
