Latest News

More than a million people in England could be borrowing from a loan shark – report


© Reuters. FILE PHOTO: A British Pound Sterling note is seen in this June 22, 2017 illustration photo. REUTERS/Thomas White/Illustration

LONDON (Reuters) – As many as 1.08 million people in England could be borrowing from a loan shark, more than three times the government’s most recent estimate, according to a report by a think-tank published on Monday.

The Centre for Social Justice (CSJ), while noting the difficulties of measuring illegal borrowing, said its estimate was based on a poll of about 4,000 people and an analysis of evidence provided by 1,200 known victims.

The last official report on illegal lending from the government in 2010 estimated the number of people borrowing from illegal lenders at 310,000 across the United Kingdom.

The CSJ said over a fifth of victims took more than five years to repay an illegal lender.

“We can expect this to get worse. The emergent cost-of-living crisis casts a looming shadow of financial anxiety,” it said in a report.

Finance minister Rishi Sunak is expected to address Britain’s worsening cost-of-living squeeze in a budget update on Wednesday, with inflation on track to top 8% after Russia’s invasion of Ukraine.

Britain’s lowest-paid workers have seen the biggest squeeze on their pay over the past 12 months.

The CSJ said illegal lenders were increasingly operating online, using social media to lure new borrowers, and that the vast majority of lenders ensure payment through psychological manipulation, coercion and by pestering borrowers.

The report said a small but significant minority use intimidation and violence. In many cases, illegal lenders had demanded a borrower deliver drugs or refer new clients to them, it added. Some had even asked for sex in return for the money owed.

More than a million people in England could be borrowing from a loan shark – report

Disclaimer:Fusion Mediawould like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

January’s huge market correction was just the beginning of a lost decade in stocks, Stifel’s chief equity strategist says

Previous article

Shopify’s Stock Is Falling Again After 50% Four-Day Rally

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News