Illegal Money Lending and the Financial Inclusion Plan

Illegal money lenders, are unlicensed (lending without a Consumer Credit licence) and operate outside the law. They are commonly referred to as loan sharks. These loan sharks not only take advantage of vulnerable borrowers but also bring disrepute to legitimate lenders.

The England Illegal Money Lending Team (IMLT) was set up in 2004. Initially created as a pilot scheme in Birmingham to investigate loan sharks it had such an impact on illegal money lending it received further government funding.

Today the England IMLT investigates and prosecutes illegal money lenders while supporting those who have borrowed money from a loan shark. Illegal Money Lending Teams in Scotland and Wales ensure the entire UK is working to stop loan sharks.

Each team is comprised of specialist investigators and Liaise Officers who have previously worked for the police, trading standards, and debt advice services. Together the investigators and Liaise Officers work to prosecute illegal money lenders while supporting people who owe money to a loan shark.

The England IMLT works as Stop Loan Sharks within local communities, within education, and with partner agencies including the police. Since 2004, the England IMLT has supported over 32,000 people and written off over £91.3 million worth of illegal debt.

It is estimated that there are 1.08 million people in debt to illegal money lenders in England. The Illegal Money Lending Teams within the UK work to raise awareness of what illegal money is while investigating and prosecuting loan sharks.

The Illegal Money Lending Teams in England, Scotland and Wales work alongside the Financial Conduct Authority (FCA) to investigate those operating within the consumer credit market without the appropriate authorisation.

In 2016 the Government legislated to introduce an industry levy to fund the activity of the teams and to take action against illegal lending.  The service is governed and overseen by the Financial Conduct Authority and HM Treasury.

Financial Abuse

The Newcastle Safeguarding Adults Board on the 15 November 2021 launched guidance on identifying, preventing and responding to financial abuse.

Financial abuse can be wide-ranging and complex. It can be difficult to identify and knowing where to go for help might be confusing for both the person at risk and those supporting them. The guidance aims to help with this.

This guidance is primarily in relation to adults with care and support needs and is intended to complement the over-arching Newcastle Safeguarding Adults Board multi-agency safeguarding adults policy and procedures.  However, many of the services, support and information detailed are universal and are available to all adults.

Over the last five years, financial abuse has accounted for between 16-19% of all Section 42 enquiries undertaken in Newcastle. Financial abuse can have a serious impact upon a person, not only on their money or property but also on their overall wellbeing, physical and mental health.

Newsletter

To access a copy of the Winter 2024 IMLT newsletter, go to Newsletter (pdf 2.8 mb)

The City Council has now adopted a new approach to increasing financial inclusion. The Financial Inclusion Plan aligns the work of a range of partners to reduce duplication and target capacity to meet our shared priorities. The plan is about making the most difference to people whose lives will be improved by becoming financially included. Financial inclusion is about making sure everyone has access to appropriate financial services and the skills and confidence to use them to improve their lives.    

Financial inclusion is an important element in tackling poverty and facilitating social justice. The aim of the Financial Inclusion Plan is to make a measurable difference to financially excluded people.  

Cost of Living Support 

To access the City Council's response to the Cost of Living Support

Newcastle Debt Advice

This is a partnership of debt advice agencies. Its aim is to deliver fast simple access to free advice and information for people with debt, rent or mortgage problems, and the services involved include in Newcastle Debt Advice include Welfare Rights and Money Advice, Newcastle Citizens Advice,  and Shelter.  

Media

To access more information on the work of the IMLT in the region go to a recent story on Capital North East

Contact

Trading Standards service, Directorate of City Operations, Neighbourhoods and Regulatory Services, Civic Centre, Newcastle upon Tyne, NE1 8QH. Email: tradingstandards@newcastle.gov.uk