Doorstep lenders, car finance companies, pawn shops, catalogues and weekly payment stores sometimes charge very high interest rates on any purchases made from them.
While these lenders operate legally, in many communities there is often a problem of illegal loan sharks who may use fear, intimidation and violence to enforce their loans.
If you believe there is an illegal operating loan shark in your area you can report them anonymously:
- Call 0300 555 222
- Text ‘loan shark’ and details to 60003 (local call rate, including inclusive mobiles)
- E-mail
However, there is an alternative! Great value loans are available from your local credit union. Credit unions are not-for-profit financial co-operatives which are run by local people, for local people. Your credit union doesn't only do larger loans for cars and summer holidays at bank-beating interest rates, it also does smaller loans for those everyday needs like birthdays, car repairs and household goods?
A £500 loan from the main doorstep lender, repaid over 52 weeks, costs £410 in interest alone! The same loan from the Credit Union would cost just £67 in interest, saving you a huge £343 on borrowing just £500.
To find details of your local credit union click here or call 01772 450600
