People in Angus struggling for cash have been urged not to turn to doorstep lenders and loan sharks to pay off Christmas debt.
Loan sharks target the poor in deprived areas and extend small amounts of credit in return for exorbitant fees.
They often use threats of violence if their customers fail to repay loans in a timely fashion.
Arbroath councillor Donald Morrison said loan sharks are an “evil scourge” and urged anyone with money worries to contact their nearest credit union.
“It is a sad indictment on our modern society that some families or individuals feel forced to spend more than they have over the Christmas period,” he said.
“With the current financial climate it is also deeply concerning to learn that more people are turning to loan sharks.”
He added, “Loan sharks may be seen as an easy route in getting money but they are an evil scourge, charging horrendous interest rates and causing so much misery on those who borrow from them.
“However, there are legal alternatives… and I am delighted Angus Council supports the credit unions based in the county and would urge anyone with money worries to contact their nearest credit union rather than going to a loan shark.”
The Office of Fair Trading (OFT) says more than 250,000 people may be vulnerable to unscrupulous lenders charging punitive rates of interest.
OFT director Ray Watson said, “We are always concerned about people using loan sharks, but particularly at this time of year when people are under significant financial pressure.
“Loan sharks are a bad option. They are violent and operate outside the law.”
He added, “We urge people not to borrow from them under any circumstances.”
It is estimated 85,000 people annually borrow from more than 150 separate illegal money lenders across Scotland.
Photo used courtesy of Stewart Lloyd-Jones.