Natalie Barker, LIAISE OfficerThe Illegal Money Lending Team

Welcome to your sessionPlease complete the loan shark quiz in front

of you before we start

Are you on Social Media?Please follow us on Facebook we are Stop

Loan Sharks Project

And on Twitter @loansharknews

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An Introduction

Introductions

Please shareYour nameThe organisation you representYour roleWhat would you like to find out today?One word to describe a SHARK

What is a Loan Shark?A loan shark is someone who lends money

without the correct permissions under Section 19 and 23 of the Financial Service and Markets Act

These licences are issued by Financial Conduct Authority

It is a criminal offence and carries a maximum sentence of two years in prison.

Who enforces this legislation?

England Illegal Money Lending Team

Set up in 2004 as a pilot projectHosted by Birmingham City CouncilEmploys 70 members of staffTwo distinct functions Investigators

and LIAISE OfficersAgile workers across England

Liaise Officer’s RoleAwareness – Linking in with local authorities

current safer community strategies and influencing senior policy makers

Intelligence – Gathering intel, liasion with police and other intel agencies

Support – providing victims with a 1:1 support mechanism right up to court hearing

Education – working with local communities to highlight the dangers of loan sharks, training, talks etc

The Enforcement sideProsecute Loan SharksManage the hotline 24/7 0300 555 2222All Investigators are from Police, fraud,

Trading Standards and customs backgroundsTwo seconded Police Officers Two financial investigators who use the

Proceeds of Crime Act (POCA)An Intelligence CellLegal Team

Shark CharacteristicsFeared Work alonePredatoryConfident swimmersPick on the smallest, weakest fishFeared by allCircle their prey before attackingAbundant in warm watersExtremely sensitive sense of smell and hearing...

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Loan Shark trendsNo licenceNo paperwork - “you owe me this much”No receipts for paymentViolence, intimidation and blackmail if

repayments are missedLoans to anyone (under 18’s included)Take cash cards and other securitiesRarely advertise, find clients by word of

mouthRepayments of at least twice the original

amount, often with high charges for defaulting

Loan Shark behavioursBuilding a client list through social networking

(Facebook and Twitter) – the pub, schools gates, taxi rank...

Can be claiming benefits whilst making a lot of money

Frequently not paying any tax on their incomeOften involved in other criminality, and interest

fuels capital for thisLoan Sharks are getting smarter – no longer just

a scrap of paper or exercise book but well-hidden memory sticks...

Friend, mate, pal... Loan Shark?

“Other” chargesMoney laundering, Drug possession, Intent to supply

drugs,Possession of other people's property

(passports),Possessionof firearms/prohibited weapon, Affray, Criminal damage,Blackmail, Perverting the course of justice, Fraud -

benefitFraud and false representation, Acquiring criminal

property,Concealing criminal property, Possession of counterfeitgoods, Intent to supply counterfeit goods (DVDs, clothesand cigarettes), Deception, Rape, Kidnap and Assault

The MythsUnlicensed money-lending is not illegal;

It is – you must have a Consumer Credit Licence from the OFT

If you borrow from a loan shark you are breaking the law;Not true! It is the loan shark who is breaking the law…

You have to pay back what the loan shark says you owe;Not true! – a loan made by someone without a licence is unenforceable

The MythsIt’s a victimless crime;

Not true! Threats, bullying, intimidation – loan sharks will use force. Victims can also get involved in petty crime to pay back their loan

Loan Sharks are offering a reasonably priced service to people who need it;False! On average, a Loan Shark charges three times the cost as a legal money lender. Interest rates of between 8,000% and 131,000% have been uncovered…

Intelligence via partner agency following a month of action in area

Victims were his colleagues working as Chef’s and Cleaners in local restaurants.

Pleaded guilty – Illegal Money Lending, Blackmail, assault with an offensive weapon

Sentenced to 28 months in prison

Joaqim Boal - Hartlepool

Desmond CrossSentence in January 2015 along

with partner and collector Belinda Hughes

18 Months suspended sentence and 3 month curfew. Co defendants will also have to do 80 hours unpaid work

Lent £30,000 to 83 customer £18,000 outstanding at time of arrest

Operated in Country Durham had million pound Company which he took £7K from to start loan business

Loan Shark profileOf our prosecutions, 80% male, 20%

femaleThe friend of a friend “pay me back

whenever”The work colleagueThe rented debtThe debt that is passed onThe cage fighterThe 80 year old woman

Who is affected?Estimated 310,000 UK households using

illegal money lendingThis equates to 12% of households in the

most deprived areasConvert households to people and that is

about 732,000 men, women and children living in the shadow of loan sharks

People repay £700 million per year to loan sharks

IMLT achievements to dateOver 329 prosecutionsOver 26,000 victims have been

helpedOver £64 million illegal “debt”

wiped outOver £27 million worth of assets

being investigatedPrison sentences totalling 206 years

for illegal money lending and associated crimes (plus Indeterminate Sentence for Public Protection)

Quiz Answers!Loan Sharks are illegal because...

They don’t have a licence

Loan Sharks are prosecuted by... Trading Standards

If you take out a loan with a loan shark you must pay it back...

False

You have to give evidence in court... False (unless you are giving a statement, rather than info)

The highest rate of interest... 131,000 % !!

Information and Intelligence

The scientific partInformation is the passing of knowledge from

one source to anotherIntelligence is the end product of a process

by which information is checked and compared with other information and is then used to inform decision making

In order to proceed with an investigation, information must be turned into intelligence

What would you do?The following DVD is an actor who is re-

telling the situation faced by a real-life Loan Shark victim

Please take notes on the following;

What facts can you gather?What are the key pieces of

information/intelligenceWhat questions might you ask if you were

undertaking an interview?

Your Organisation

Scenarios you might encounterSplit into groupsEach think about your scenario

Report back on the following:How would you approach the situation?What are the issues for the Organisation?What re-active strategy could be put in place?What pro-active strategy could be put in place?

RememberIllegal money lending is a indoor unseen crimeIt is notoriously well hiddenPeople with debts are more likely to be stressedMultiple debts (including rent arrears) are

commonQuality of life is often poor – lots of symptomsTrapped in a payment cycle, both illegal and legalDesperate for help, unable to shout outFear and reprisal is number one on the list of why

people don’t want to come forward...

Making a Difference

Make a difference – as a Stop Loan Sharks Campaign partner!

What actions will your organisation take?

How will you measure the success?Who will be your Campaign contact?

Please also use the handout for some simple and effective ideas

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Liaise Officer Contact Details for Middlesbrough, County Durham, Newcastle upon Tyne, Northumberland and North Tyneside

Name: Natalie Barker

Tel: 07557 203 149

E-mail: Natalie.Barker@birmingham.gov.uk

Evaluation and Feedback