MoneySolve Warns Consumers Against Illegal Lenders

MANCHESTER, England, March 8 /PRNewswire/ -- Debt advice specialists at MoneySolve have set out to warn consumers about the dangers of borrowing money from loan sharks.

An estimated 100,000 families borrowed money over the festive season alone from unlicensed lenders, and MoneySolve's experts believe most are driven to illegal lenders by desperation, noting that: "Poor credit ratings mean that some people struggle to get a loan through banks or licensed lenders and illegal lenders prey on desperate people. However desperate your circumstances look, though, borrowing money from an unlicensed lender is almost certain to make your situation much worse."

Loan sharks operate outside of the law and this, MoneySolve advises, means that their borrowers are subject to higher interest rates and potential harassment.

"Operating illegally, loan sharks don't abide by any OFT or Banking codes of practice. This means that their interest rates, charges and general conduct aren't regulated. This in turn means that people run the risk of being harassed if they miss a payment and of paying excessive and extortionate rates of interest."

Personal debt is an ongoing issue in the UK, with 2009 presenting over 134,000 personal insolvencies (resulting in an individual entering into an Individual Voluntary Arrangement, Debt Relief Orders or Bankruptcy).

MoneySolve is keen to emphasise the availability of help for those in a desperate financial situation.

"Whatever your circumstances, seeking out professional advice is the first step in the right direction. Regardless of how desperate it looks, there are options available that do not involve going to loan sharks."

SOURCE MoneySolve

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