With tight finances it’s tempting to find avenues of getting hold of some extra pennies but The Wales Illegal Money Lending Unit (WIMLU) is warning students in financial difficulties about the dangers of resorting to un-reputable money lenders or loan sharks.
If you turn to loan sharks for credit you can soon find yourself in dire straights as the interest rates are sky high. Some top tips have been released at:
UK students have fallen prey to loan sharks via text or social network sites where they have been offered ‘easy money’. Others have been approached by cold callers at the door offering loans.
WIMLU advise students who are facing a severe cash crisis to contact their University’s Welfare Officer or Finance Officer immediately for advice and support.
Students who turn to loan sharks are likely to:
• Pay extortionate rates of interest
• Have no paperwork or proof of repayments
• Be ordered to make additional payments as the loan shark sees fit
• Suffer from threats or intimidation if they fall behind with payments
Steven Hay, Trading Standards Manager for WIMLU says: “The credit crunch has made students with low incomes very vulnerable making it difficult for them to access affordable loans. Turning to a loan shark will never solve your money problems. They charge very high rates of interest and can often resort to violence and intimidation. They should be avoided at all costs. “
Students who have fallen victim to a loan shark should contact the Wales Illegal
Money Lending Unit 24 hour hotline in confidence on 0300 123 3311.
Email: firstname.lastname@example.org or text ‘loan shark’ to 60003.