Vulnerable people in Inverclyde falling prey to loan sharks

In one devastating case, an unsuspecting Greenock mum with a young family borrowed £50 from an illegal money lender she thought was a friend - and was forced into paying back £4,000.

Within months she was unable to afford to buy food or clothes for her children, with no idea when her ordeal would stop, and had to flee.

It is understood that there are nine such illegal money lenders operating in Inverclyde, which has one of the highest rates of deprivation in the country.

Now Greenock east end councillors Colin Jackson and Michael McCormick are taking a  stand, joining forces with local authorities body Cosla and Police Scotland to launch an awareness campaign.

Councillor Jackson, one of three councillors for the poorest ward in Scotland, Inverclyde East Central, said: "One of the most worrying aspects of this is that these people are part of and living in the communities.

"They start off pretending to be friends, offering to help, and before their victim knows it, they are demanding hundreds and then thousands of pounds.

"They are also using new methods to keep people in fear, threatening to expose them on social media and to tell their family and friends."

With the cost-of-living crisis and ongoing high energy prices hitting people across Inverclyde in the pocket, Councillor Jackson says he and his colleagues are coming across a growing number of alarming cases.

(Image: Duncan Bryceland)

In one situation, Councillor Jackson said he'd been made aware of a mum who had borrowed £50 from someone whom she didn't even know was a loan shark.

He added: "They wouldn't let her pay it back until he came calling saying she owed £150. And from then on every week the payments increased. Eventually they were demanding hundreds of pounds a month.

"She then faced threats to herself, her kids and her family."

By the time the victim had paid back £4,000, she was left with no money.

Councillor Jackson added: "She had no idea how much she still owed or how much she was expected to pay back.

"She was left with no money to feed or clothe the kids. But luckily, in the east end, we have a
community centre that provided her with food and clothes for the kids."

In the end, the young mum fled Greenock altogether to escape the loan sharks.

Councillor Jackson said: "There are a number of illegal loan sharks operating in the area targeting pensioners, low-income workers, and people on benefits.

"With so many households struggling to make ends meet, we are concerned that more vulnerable individuals will find themselves falling prey to these parasites.

"More than half of people who are affected by this crime struggle to feed their children because of the pure greed of loan sharks."

Recent research shows that two-thirds of people affected by illegal money lending believed the lender was a friend, but they trap their victims into a vicious cycle of spiralling debts through threats, violence, and intimidation.

Councillor McCormick, who ran a post office in the town's east end, is well aware of the impact.

He said: "We just want people to reach out and get help before it is too late. "

They are encouraging people struggling for cash to go to their local community centres like Craigend Resource Centre to get access to information and advice.

Councillor McCormick added: "Inverclyde HSCP has advisers and there is also Financial Fitness as well."

Councillor Jackson says he is determined to stop local people being trapped by illegal money lenders.

He said:  "As councillors, we are well aware this is a police issue and out of our control, but with the support of COSLA and the Scottish Illegal Money Lending Unit, we can try to raise awareness.

"With local families coming under increasing financial pressure, they may find themselves
considering the option of borrowing from a loan shark as a quick fix.

"We would urge them to get professional advice. We need them to know there is support out there."

Craigend Resource Centre manager Brian Power is also keen that people come to them for advice and information.

He said: "We will do what we can to help to point people in the right direction."

The Scottish Illegal Money Lending Unit (SIMLU) has a 24/7 helpline and works to reassure people that if they have borrowed from an illegal money lender they are not in trouble and have not committed a crime.

SIMLU's confidential loan shark helpline is available on 0800 074 0878 and an online reporting form is also available at the organisation's website at stopillegallending.co.uk.

The helpline is open 24 hours a day, 7 days a week.

People struggling with financial issues and needing advice can call Inverclyde's HSCP advice services on 01475 715299 or 715365 or Financial Fitness, Inverclyde's independent welfare benefit and money advice charity, on 01475 729239.