British Watchdog Group Cracks Down on Payday Loan Sharks
By J.J. CameronPayday Loan Writer
As low fee payday loans take hold in Great Britain, at least one consumer group is trying to stop the spread of corrupt lenders. Yes, the Scottish Illegal Money Unit is on the case across Glasgow, currently probing 94 cases of questionable loan practices.
The seven-member team's achievements were recently trumpeted at the Trading Standards Institute's (TSI) conference in London. The payday loan team has used the law to seize 500,000 pounds worth of illegal lenders' assets.
Ron Gainsford, chief executive of TSI, said: "The units have had remarkable success - not only catching some of these sharks but also warning people not to fall into their trap."
Not shockingly, these investingations have found that illegal money lenders and payday advance lenders target vulnerable people, such as single mothers, drug addicts and those with mental health problems. The worst use threats or violence to force their victims to pay up at extortionate rates.
Malcolm Hurlston, chairman of debt charity the Consumer Credit Counselling Service, said:
"Loan sharks are the scourge of society … We would like to see financially respectable creditors making products available for the less well-off … They put plenty of effort into the wealthy - let's see them work on the poor."
