Supporting Your Employees: Protect Against Loan Sharks This Christmas

Supporting Your Employees: Protect Against Loan Sharks This Christmas

As the festive season approaches, many employees will be looking forward to parties, presents, good food, and family celebrations. However, Christmas can also bring added financial stress and pressure, creating opportunities for illegal money lenders, or loan sharks, to take advantage of vulnerable individuals.

As a credit union offering ethical financial services we care deeply about the wellbeing of our communities, including your employees. We want to help ensure no one falls victim to these predators, especially during a time meant for joy and connection.

We are not alone in addressing this concern. The England Illegal Money Lending Team (IMLT), known as Stop Loan Sharks, has issued a warning ahead of Christmas about seemingly friendly loan offers, which may actually be from predatory loan sharks.

Understanding the Threat of Loan Sharks

Loan sharks often present themselves as friendly and helpful, offering quick cash with seemingly easy repayment terms. However, their true intentions often surface once borrowers find themselves unable to pay. Threats, intimidation, and excessive interest demands quickly follow, leaving borrowers in fear and financial turmoil.

These illegal money lenders can be anyone - an acquaintance, a parent at the school gates, a colleague, or even a long-time family friend. Unfortunately, many borrowers don’t realise they’re dealing with a loan shark until it’s too late.

Spotting the Warning Signs

Employers and colleagues can play a critical role in identifying and supporting employees who may be at risk. Look out for these warning signs:

• No paperwork or official documentation about the loan.
• Repayments that far exceed the original amount borrowed.
• Intimidation or threats when payments are missed.
• Demands for personal items, such as bank cards or passports, as collateral.

A Safer Alternative: Credit Unions Like Wave Community Bank

If your employees need financial support, encourage them to explore ethical, safe, and community-focused alternatives like Wave Community Bank. As a local credit union serving Brighton & Hove, East Sussex, Kent, Medway, and the London Borough of Bexley, we offer responsible borrowing options for those who may have been refused credit elsewhere.

Our goal is to support the financial well-being of individuals and families, helping them avoid the stress and danger of turning to illegal money lenders. By borrowing through Wave Community Bank, your employees can access fair and transparent financial solutions designed with their needs in mind.

Encourage your team to learn more about joining Wave Community Bank by visiting our website.

Empower Your Employees with Chorus

One effective way to support your employees' financial wellbeing this festive season is by offering Chorus, our workplace savings and loan scheme. Provided at no cost to employers, Chorus is a valuable staff benefit that enables employees to save and manage loans directly through payroll deductions.

By integrating Chorus into your workplace, you can help your team take control of their finances effortlessly. With no fuss or hassle, employees can manage their money securely and conveniently, fostering a sense of financial stability and reducing stress.

Supporting your workforce with a benefit like Chorus not only enhances employee satisfaction but also demonstrates your organisation’s commitment to their overall wellbeing. You are also proactively supporting your employees by reducing the risk of them turning to illegal money lenders and the serious challenges that can arise from such situations.

What to Do If Someone Is Targeted by a Loan Shark

If you or someone in your organisation suspects they have been targeted by a loan shark, the England Illegal Money Lending Team (IMLT) - better known as Stop Loan Sharks – can help you. The IMLT investigates and prosecutes illegal lenders while providing confidential support to borrowers.

Here’s how to get in touch with the IMLT:

• Call the 24/7 confidential hotline: 0300 555 2222
• Text a report to 07860 022116
• Use the live chat feature at www.stoploansharks.co.uk (Monday to Friday, 9 am to 5 pm)
• Email [email protected]

It’s crucial to emphasise that borrowing from a loan shark is not a crime - it’s the lender who is breaking the law.

Protect Your Employees This Festive Season

As an employer, you can play a pivotal role in safeguarding your team from financial harm. By raising awareness about loan sharks and promoting alternatives like Wave Community Bank, you demonstrate a commitment to their well-being, ensuring a brighter and more secure festive season for everyone. Together, we can protect our community from the dangers of illegal money lending.