Member Article

Gateshead at risk from loan sharks

200,000 people in Britain are at risk from illegal loan sharks because they cannot access credit from traditional lenders, according to a report published this week.

The economic downturn may lead to more people having to use illegal money lenders, according to the independent think tank the New Local Government Network. One North East location in particular was singled out - Gateshead.

The group predicts an additional 35,000 people are likely to have to use loan sharks as a result of the recession, on top of the estimated 165,000 who already borrow from them, although it said the figure could be even higher.

The think tank said Gateshead, Stoke, Lincoln and Manchester were among the places most likely to be targeted by loan sharks, and called for councils in those areas to pump funds into credit unions.

Chris Leslie, author of the report, said: “There is evidence to suggest that the pernicious trend of illegal unsecured lending at extremely high rates of interest, or ‘loan sharking’, is making a comeback.

“Further intervention from local government is a crucial next step and we look forward to strong leadership from the sector at a time of great urgency.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .