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Tenants Beware of Loan Sharks this Christmas

Housing association and council house tenants can be particularly vulnerable at Christmas to loan sharks and unscrupulous individuals that offer doorstep lending. Make sure you don’t fall into the trap of obtaining loans from these sharks because it can be dangerous and extremely costly.

It is NEVER a good idea to accept loans from doorstep sellers because they are often not licensed and charge up to 200% in interest. Loan sharks can charge interest rate percentages in thousands rather than hundreds. Recently a Bangor loan shark, who was charging some tenants up to 149,000% annually, was sentenced by Mold Crown Court to 2 years imprisonment because his business was not licensed. Clearly people who had taken out loans with this man would never be able to pay the money back.

Dealing with reputable lenders does not expose you to any of the harassment that is commonly associated with loan sharks. Some victims have reported threats of burning their houses down and collectors arriving with knives – it is just not worth negotiating with these people no matter how much you may need the money.

loan shark

There is some evidence to suggest that illegal money lenders loiter around houses where new tenants are moving in specifically to offer loans to pay for electrical domestic goods or other furniture items. If you are approached by anyone in the street offering these types of loans don’t even think about accepting because if they are attempting to do business in the street it is almost certain that they are not properly licensed.

Christmas can be a nightmare for parents that are on lower incomes because naturally children expect Christmas presents and children from wealthier families can be very cruel to those less fortunate, bragging about their new mobile phones or iPods. The pressure placed on parents nowadays can be very stressful but the good news is that tenants can now get loans from various sources even if they have a bad credit scores.

A quick search of “Moneyline” or “Payday Loans” will produce a variety of loan options whereby the lender is only interested in your ability to pay off the loan rather than the less than favourable credit scores you or your partner may have; and this means that you are dealing with licensed and reputable lenders rather than loan sharks that prey on people who they know are on limited incomes. Have a look at some loan options on our pages about tenants loans.

No matter which option you choose make sure that you read all of the small print when signing for the loan so that you know exactly what you will have to repay and at what interest rate.



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