Ann Jones, Labour AM for the Vale of Clwyd, is backing a new campaign warning people of the dangers of using loan sharks.
Community Housing Cymru and the Wales Illegal Moneylending Unit (WIMLU) have a launched the ‘Don’t Get Bitten by Loan Sharks’ campaign to combat the problem of illegal money lenders.
Mrs Jones said:
“Loan sharks have been capitalising on the continued pressure on family incomes. Families who desperately turn to loan sharks often go into a downward spiral and actually make their situations worse.
“I am concerned about how many of my constituents have been turning to loan sharks and I encourage them to speak to Citizen’s Advice Bureau or the North Wales Credit Union to seek financial advice. Loan sharks are never the answer.
“Credit unions provide access to low cost credit and really do offer a solution to the problem”.
Every year in Wales, thousands of people turn to illegal money lenders or loan sharks. Figures from WIMLU reveal that number of people in Wales turning to loan sharks has risen from 15,000 victims in 2009 to 26,000 victims in 2011/12, a 40% increase.
This month the Welsh Labour Government announced a £1.2 million of financial support for credit unions across Wales to help them increase membership and develop additional financial services and products to meet the needs of customers.
