PAY DAY LOANS

I was concerned to read in the press recently about the increase in pay day loans and pay day loans companies which can charge customers up to an eye-watering 4,214%. Typically debt collectors are sent out after just 60 days. Compared to other countries the service is regulated very lightly here. If not used properly these pay day loans can lead to individuals having spiralling debt and the more vulnerable in society are particularly at risk if they don’t get good advice.

Illegal money lending is a different matter and one which the Council takes very seriously and a pilot project started in Birmingham in 2007 to investigate illegal money lending was extended to include Leeds in 2007. Seven Illegal Money Lending teams exist nationally and have, since inception, identified over 2000 illegal money lenders, 200 prosecutions have been secured, helped 18,000 victims. Victims have also been referred to alternative sources of financial support. The following email can be used to report illegal money lenders: reportaloanshark@stoploansharks.gov.uk 

An alternative to either of the above are Credit Unions. If you would like to find out more about Leeds City Credit Union go to www.leedscitycreditunion.co.uk