A loan shark who preyed on a vulnerable woman is due to be sentenced on Monday 20th June at Merthyr Crown Court. He was convicted earlier this month after a week long trial of 3 counts of unlicensed debt collecting and money lending.
Michael Rees charged the woman extortionate rates of interest on an initial loan of £500, taking up to a £1000 pounds a month including the victim’s benefit payments for the month which he collected by using her post office card. The initial loan was £500 and she had to pay back £3000.
Rees exploited his victim by encouraging her to take out further loans including one for £1300 where the interest charged was £4800.
Police and Officers from the Wales Illegal Money Lending Unit (WIMLU) raided his house in Tonteg and discovered the woman’s post office card as well as £48000 in cash under his bed. The cash was thought to be profits from his illegal money lending operation and working capital.
Deputy Leader and Portfoilio member for Customer Services of Merthyr Tydfil CBC, Councillor Tony Rogers commented: ““The Wales Illegal Money Lending Unit has again shown their expertise in protecting Merthyr Tydfil residents from the threat of illegal money lenders preying on the vulnerable. In today’s tough economic climate I would urge consumers to seek expert advice from a Credit Union or the Citizens Advice Bureau instead of turning to a loan shark. Those who are currently victims of a loan shark please come forward and seek help and advice.”
Steven Hay, Operational Manager of Wales Illegal Money Lending Unit said: ‘Michael Rees’ actions were despicable and caused great upset and harm to his victims. Loan sharks prey on the vulnerable in our communities, if anyone needs help or knows anyone who is involved with a loan shark should contact the Wales Illegal Money Lending Unit on our confidential 24 hour hotline: 0300 123 3311’
