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Borrowing on the doorstep?
Here are some useful tips for anyone thinking of borrowing from a doorstep lender:
- only borrow from legal lenders
- ask for proof that the lender has a Consumer Credit Licence. People lending without a licence are illegal. You are not breaking the law if you borrow from someone without a licence but you are likely to be ripped off and worse
- illegal lenders are loan sharks
You may have been bitten by a loan shark if your loan keeps growing even though you pay regularly.
One loan shark customer had to pay £50 a week out of her benefits of £74 per week.
Another was charged 117,000% interest (APR).
Some loan sharks threaten you when you can't repay, but their loans are unenforceable without a court order.
Most of them don't provide paperwork and you never know how much you have paid.
If you think you've been bitten by a loan shark, phone the confidential help line on 03005 552 222.
It is staffed 24 hours a day, all year round, by members of a special team working with Hull Trading Standards.
Charges are local rate (including inclusive minutes from mobile phones).
You can also email: stoploansharks@birmingham.gov.uk The team can check to see if your lender is legal.
You will not get into trouble with the authorities, and remember it is the loan shark who is behaving illegally.
Finally, consider other options for borrowing money such as a "not for profit" credit union.
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