Leicester-based Clockwise Credit Union has won national recognition for its efforts to protect borrowers loan sharks.
The credit union, which covers Leicester, Leicestershire, Rutland, Coventry, Warwickshire, Rugby and Nottinghamshire, is now an official accredited partner of the England Illegal Money Lending Team (IMLT).
The credit union has worked with the IMLT for several years to raise awareness of the dangers of illegal lenders and how credit unions offer a safe alternative.
The IMLT, also known as Stop Loan Sharks, is a national organisation that investigates and prosecutes loan sharks and supports borrowers. Clockwise promotes the team on its website, at events and in branches.
To get official partnership status, all staff have undergone specialist IMLT training to learn how to spot the signs of a loan shark and how to get help. They will also continue to raise awareness and support IMLT team members as they work to investigate reports of illegal lending activity in local communities.
“Our staff are now more aware of the horrors and stress that loan sharks put upon people following the training and how to recognise a person who may be borrowing from a Loan Shark, by asking pertinent questions,” said Clockwise CEO Teresa Manning.
“As an ethical lender, Clockwise knows the importance of offering fair and affordable credit to those most in need of it. We’re happy to support the Illegal Money Lending Team in their mission to investigate and prosecute illegal money lenders not only in our common bond area but across England. We’re enormously proud to receive the Partnership Recognition Award and will continue to work with the team.”
Dave Benbow, acting head of the IMLT, said: “We are delighted to welcome Clockwise Credit Union as an official partner. We are hugely grateful for the work they do to support us in disrupting illegal lending operations that cause so much misery.
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“Partners like this are an invaluable help in getting these criminals removed from communities, protecting the most vulnerable and making everyone feel a little bit safer.”
Many illegal money lenders are well known within their communities and are often introduced to borrowers through friends or family members. They are unregulated and give loans with no paperwork, often charging high interest rates. They often resort to threats, intimidation and even violence if repayments are not made.
Because these lenders are not registered with the Financial Conduct Authority, borrowers do not have the protection of consumer law such as cancellation periods and the ability to apply for help if they can’t pay. This can cause huge amounts of stress and impact other finances – leaving them unable to pay rent or other priority bills.
The IMLT was created in 2004. Since then the team has secured 427 successful prosecutions, with illegal lenders locked up for more than 609 years. More than £91.3m in illegal debt has been written off, and around 32,000 borrowers have been supported.
Anyone who has been affected by illegal money lending should call the Stop Loan Sharks 24/7 Helpline on 0300 555 2222 or access support online at stoploansharks.co.uk. Live Chat is available on the website from 9am to 5pm, Monday to Friday.
