A LOAN shark who operated an illegal money lending business in Redditch has been ordered to pay back more than £11,000 following a hearing at Worcester Crown Court today (Monday, November 21)
43 year-old Donna Whyte, of Aldington Close, was given an eight month prison sentence for running an illegal money lending business without a license at an earlier hearing in May which she must serve if she does not pay back the £11,600 she owes within three months.
Whyte was investigated by the England Illegal Money Lending Team (IMLT) who work in partnership with Worcestershire Regulatory Services Trading Standards and West Mercia Police. IMLT Officers seized electronic devices, documentation and cash from her home address in March 2015.
Whyte had around 50 regular victims, often with multiple loans each, ranging from £100 to £400. She charged 50% interest and had lent out over £33,000 from January 2012 until her arrest in March 2015.
Tony Quigley, Head of Service for the England Illegal Money Lending Team said: “Today, another loan shark has been ordered to pay back for the crime that they once committed.
“We are continuing to crack down on illegal money lending and bringing those who break the law to justice. It’s important to remember that loan sharks are only motivated by greed and should never been used.”
Worcestershire County Councillor Lucy Hodgson, Cabinet Member for Localism and Communities said: “It is good to see the courts ensuring that these criminals do not keep the profits from their activities.
“Loan sharks are a blight on our communities, operating in a number of areas of the County and preying on those in serious financial need and facing hardship.
“This practice needs to be stamped out and we urge anyone with information about Loan Shark activities to contact the hotline number.”
Loan sharks operate illegally, without the correct permissions from the Financial Conduct Authority. These criminals usually appear friendly at first but quickly trap their borrowers into spiralling debt, and as the debts cannot legally be enforced many lenders will resort to the most extreme and callous methods to enforce repayment.
Paperwork is rarely offered so victims are often in the dark as to how much they are actually paying. Exorbitant extra amounts and interest are added at random- the highest interest seen by an illegal lender was equivalent to 131,000% APR. In some cases the loan sharks have been known to take items as security including passports, driving licences and bank or post office cards with the PIN in order to withdraw directly from borrowers’ accounts.
Nationally, Illegal Money Lending Teams have secured more than 354 prosecutions for illegal money lending and related activity, leading to nearly 298 years’ worth of custodial sentences. They have written off over £71.75 million worth of illegal debt and helped over 26,000 people.
To report a loan shark call the 24/7 confidential hotline 0300 555 2222 or text a report to 078600 22116.
