Joyce backs war on Welsh loan sharks

Joyce Watson AM has backed the launch of a new helpline to help protect people from illegal money lenders.

Labour Assembly Member for Mid and West Wales JOYCE WATSON AM, said:

“This hotline is an important step forward for the victims of loan sharks in our communities.

“I have seen the anguish these people can cause, and I know this is an issue for small communities as well as large towns and cities. Loan sharks prey on some of the most vulnerable people in our communities by ripping them off with extortionate rates of lending, often backed up by intimidation and threats of violence. They are a menace in our communities.

“I urge people to ring the confidential hotline number, 0300 123 3311 if they or their families want help and support against loan sharks. This should help to create a climate in which victims can come forward without fear of reprisals.”

The hotline has been set up by Cardiff Trading Standards in partnership with the Wales Heads of Trading Standards and is part of the All Wales Illegal Money Lending Unit - an eight strong team of trading standards officers who help people having problems with illegal money lenders throughout Wales.

Launching the helpline, Social Justice Minister Dr Brian Gibbons said the service is a further step forward in the battle to get loan sharks off the streets.

Dr Brian Gibbons said:

"We know that many people on low incomes simply can't access affordable sources of credit and are often forced to seek out expensive alternatives, from doorstep lenders to pawnbrokers to illegal loan sharks. These lenders often charge extortionate rates within an environment of intimidation and violence.

"Accessible financial and debt advice and affordable credit and loans are two of the five core themes of Wales's first Financial Inclusion Strategy which the Assembly Government is developing over the coming year."

The Minister stressed the importance of credit unions in combating financial exclusion and offering a real alternative to doorstep lenders and loan-sharks.

He said: "Credit unions provide opportunities for savings and budgeting advice as well as access to affordable credit and basic financial services such as insurance.

"Since 2000 we have invested 1.5 million in developing a strong and sustainable movement. We now have 33 active credit unions covering most of Wales and with our continuing support I believe national credit union coverage will soon be a reality.

"An additional 1.25 million pounds will be made available in the three years from April 2008 to help deliver our One Wales commitments on improving coverage across Wales; access for secondary pupils to credit unions and enabling more credit unions to provide child trust fund accounts.

"I am pleased that we are hosting the official launch of the All-Wales Trading Standards Illegal Money Lending Unit and hotline today. We will be working with the Unit and the Wales Co-operative Centre to identify how best we can ensure that affordable credit is made available in the areas where loan sharks are removed. This will be a vital step in dissuading other illegal lenders to move in and take their place."