Parents and guardians are being urged to enjoy a #SharkFreeSummer and be aware of the risks posed by illegal moneylenders during the summer holidays.
In the run up to the new school term, many families will feel under increasing pressure to spend money on uniforms, bags, stationery and lunches. They may feel that they have no option but to borrow money from a loan shark to help pay bills.
The Scottish Illegal Money Lending Unit (SIMLU) is launching a new campaign to raise awareness of other options that are available to families, including government grants and funding that they may be eligible to receive, credit unions, free debt advice and support from local communities, schools and charities.
Research commissioned by SIMLU last year found that 7% of respondents had encountered a loan shark either in their community or online. Across the wider population, this equates to around 300,000 people.
Illegal lenders are increasingly operating online, offering quick and easy loans via social media and WhatsApp. These loans can seem attractive to those in crisis situations; however, the lenders are not usually authorised by the Financial Conduct Authority and often charge huge interest rates. They don’t always provide paperwork or clear terms of the loan, which allows them to exploit people and trap them in a seemingly never-ending spiral of debt.
Councillor Maureen Chalmers, Chair of Trading Standards Scotland said:
“I am delighted to announce the launch of the Scottish Illegal Money Lending Unit’s Campaign, Shark Free Summer. The campaign focuses on the important issues relating to financial wellbeing over the summer holidays and the return of children to school in August. We know that this time of year can cause financial hardship for people, but we want them to know that there is support out there for them. By using these services, you can ensure that you avoid falling prey to loan sharks and the long-term trouble they can bring.”
Councillor Tony Buchanan, COSLA’s Children and Young People Spokesperson said:
“I warmly welcome the launch of the Scottish Illegal Money Lending Unit’s Shark Free Summer Campaign. At a time where costs continue to rise, it can be financially daunting to ensure that young people have everything they need for the new school year. Raising awareness of the support available is an important part of helping people avoid using loan sharks for items such as school clothing and other essentials.”
SIMLU operates a free and confidential 24-hour helpline – 0800 084 0878 – to offer immediate support with urgent issues as well as help to access local services such as credit unions, debt advice and support groups. Further advice and support is available via the SIMLU website at www.stopillegallending.co.uk, which now has a chatbot to help users.
Find out more about the campaign at https://stopillegallending.co.uk/SharkFreeSummer