Loan sharks exploiting vulnerable people at Christmas, says MP

Paramilitary-linked loan sharks are targeting and exploiting vulnerable people ahead of Christmas, Foyle MP Colum Eastwood has said.

Mr Eastwood said more than 10 people have visited his Londonderry office in recent weeks over dissident republican-linked loan sharks.

The Police Service of Northern Ireland (PSNI) have said they have made two arrests and carried out four proactive searches in relation to illegal money lending in the north west area in recent weeks, but also acknowledged this type of crime often goes unreported.

Eastwood has urged people struggling financially not to turn to loan sharks over the Christmas period and to seek out legitimate services if they are in need of help.

Speaking to BBC Radio Foyle's North West Today programme on Thursday, the former SDLP leader said he has seen a stark increase in the amount of people coming to his office to report cases of paramilitary-linked loan sharks.

"Everyone knows Christmas can be a difficult time for many people, it can obviously be a very expensive time," Eastwood said.

"Many people are struggling financially and understandably Christmas can make that even more difficult.

"It is deeply worrying to see some people, who are linked to dissident republicanism, in our community feeding off that misery that people are going through."

Eastwood said that on some occasions people who lend sums of money do not even want the money back, but rather wish to use it as leverage to control people to carry out criminality.

"These people want a hold over you, they want to control you," Eastwood said.

"I know of cases where people have gotten into difficult positions with the law because they have been asked to store weapons because these people [loan sharks] have control over them.

"I know of very vulnerable people who had no link whatsoever to dissident republicanism and they have ended up in situations where they have had to store things on behalf of a specific organisation.

"I also know of people who have got themselves into debt that is multiple times what they borrowed from these people."

Derry City and Strabane district commander Supt William Calderwood said predatory money lending – whether from individuals, organised crime groups or paramilitary groups – is illegal.

"We know that in the run up to Christmas many families feel the pressure of spending huge amounts of money on gifts for loved ones," he said.

"People who are struggling with finances may be manipulated by illegal lenders, who falsely present themselves as trying to help.

"Unfortunately, the initial loan of money often results in hefty interest rates on repayments, and victims find themselves in a terrifying cycle of debt and fear, as they struggle to pay money back.

"Victims with unpaid debts, and indeed their loved ones, are exploited and often forced to repay by other means, such as storing or selling drugs."

He encouraged anyone who has been approached by illegal money lenders to report it to police.