Dave Monk LIAISE Officer Leads In Advice, Intelligence, Support - - PowerPoint PPT Presentation

Dave Monk LIAISE Officer – Leads In Advice, Intelligence, Support & Education National Trading Standards Illegal Money Lending Team

DEVON & CORNWALL

• For the period 1st Jan - 31st Dec 2018, Devon & Cornwall had the 2nd

highest number of loan sharks arrested for any region of England.

• For the period 1st Jan – 30th June 2019 – Devon & Cornwall had the

highest number of loan sharks arrested for any region of England

Who Are The Illegal Money Lending Team

Formed by Birmingham City Council (BCC) in 2004 – now hosted by B C C and 100% funded by H M Treasury

Investigators Liaise Officers Specialist skills Safe and efficient systems Work from home

The Definition Of A Loan Shark Is

• Someone who lends money in the course of a trade or

business without having the correct permission from the Financial Conduct Authority (FCA)

• It has nothing to do with a high APR or interest rate
• It has nothing to do with bullying or harassment or worse
• It is to do with NOT having the correct permission

So-how do you spot a loan shark?

The problem is you can’t always tell as they come in all shapes and sizes, ages, cultures, sexes and can also look like reputable business people wearing suits and carrying business cards. But you can check them out first before taking the loan by looking on www.fca.org.uk and searching for them and if they don’t appear then let us know on 0300 555 2222

Who Is Being Affected?

*Estimated 310,000 UK households using illegal money lenders – this equates to a city the size of Leicester! *This also equates to 12% of households in the most deprived areas!! * Loan sharks are now targeting the 10 – 20 year olds and the over 65’s - especially homeowners!!

• Loan Shark Victim Stats 1st Jan – 31st Dec 2019.
• 62% on benefits & 70% in rented accommodation
• Average loan £3500 – average repayment £11000
• One victim borrowed £75 & repaid £13,000
• 51% of victims have a total income less of than £20,000
• 85% with a total income of less than £30,000
• 34% had considered suicide – 17% had attempted it
• 79% had suffered from anxiety, stress & depression
• The “working poor” & homeowners saw the biggest increase in

borrowing off loan sharks.

Loan sharks MO’s – Method of Operation

• No credit agreements normally given – “You owe me this much

today,” or “I want this much today.”

• No receipts or payment books
• Violence or intimidation (or threats of such) are commonplace if

repayments are missed as are charges and fees being added sometimes for no reason.

• Victims forced into criminality – “desperation crime” to pay
• Lending to young people (10 – 20 year olds) – County Lines
• Can take illegal securities e.g. cash card, passports, driving

licences, jewellery, cars, bikes even pets!!

• They rarely advertise – they find clients by word of mouth – 90%
• f victims knew the loan shark was a loan shark

Why does it matter overall ????

63% of victims told us that payments to the lender have to be prioritised before other spending 66% of victims face difficulties affording essentials such as food, fuel, rent, mortgage etc.

Thomas Johnson July 2016

SUSPECTED LOAN SHARKS APPEAR IN COURT

• 13 people in total have appeared in the Magistrates

Courts this year having been charged with either illegal money lending or money laundering following an operation in Brixham. The case has been referred to the Crown Court.

• Neighbourhood Team Leader Sgt Lee Langley said:
• Brixham and Paignton Police have executed a series of

warrants in support of the National Illegal Money Lending Team in Brixham.

• This highlights the successful partnership working

between Police and the ILMT.

DEVON LOAN SHARK JAILED FOR 27 MONTHS.

• A DEVON loan shark who operated an illegal money lending business over a

period of 9 years and preyed on vulnerable people in Torquay and Newton Abbot, has been sentenced to 27 months imprisonment at Exeter Crown Court (Sept 2017)

• Simon Mortimer (IMLT prosecutor) told the court that Paul Stretch was providing

personal loans to people in and around the Torbay area of Devon and had received payments in excess of £500,000.

• April 2018 – Paul Stretch has been ordered to pay £315,000 plus £11,500 costs

under POCA.

• April 2019 – Paul Stretch sentenced to a further 27 months and his wife received

a 24 month suspended sentence.

P N – He cannot be named for legal reasons

• He was lending to 900 people
• He made £648,000 from June ‘07 to Mar ‘08
• Millionaires life style included owning:
• Land Rover, a Porsche and a £1m house with

swimming pool and stables

• Prosecuted for 20 offences including

blackmail, assault and rape and was given a life sentence. His partner who was a Chartered Accountant was responsible for laundering the money.

• Ask them how much they borrowed, how much they

repay, how often and how long they’ve been paying for

• Ask them if their “friend” is lending to anyone else
• Ask them how they make their payments:
• Ask them if their “friend” takes them to the cash

point “as a favour”

• Ask them if the “friend” comes around to their home
• Ask them what happens if they miss a payment

16

If someone says they have borrowed from a “friend”…

IMLT Offer

• Training – to staff and advocates
• Support to clients
• Removal of loan sharks
• Publicity and mascots
• Web links, social media, content
• POCA projects and credit union incentives – help with bids

and promotion

• National and local campaigns – SLS Week, Weeks of action,

Op Gripped

IMLT Offer (continued)

• E-learning and podcasts
• Shark proofing policies
• Charters
• Education packs and projects in schools, scripts for plays
• Newsletter and bespoke articles/taglines/text for plasma

screens

• Videos – multi-language, sign language, cartoon, credit

union, victims

• Police – help tackling OCGs, intel word search, warrant

support and help with legislative interpretation

IMLT National Successes to date...

• Written off more than £74 million of illegal

debt

• Helped over 30,000 victims
• Seized and confiscated over £1.6 million

cash

• Trained over 100,000 front line staff
• 100% conviction rate to date!
• Currently chasing over £32m in Proceeds

Of Crime Act money from loan sharks

National Promotion and Publicity

National Hotline 0300 555 2222 Website: www.stoploansharks.uk reportaloanshark@stoploan sharks.gov.uk PIN free tel. number for prisoners Reporting intel…

• 5x5x5
• Email/phone call to me
• Email/phone call to Stop Loan Sharks
• Intel log

All reports are confidential!

Thank You

Dave Monk LIAISE Officer – IMLT South West Region dave.monk@birmingham.gov.uk Mob: 07864 928758 Hotline: 0300 555 2222