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Illegal Money Lenders Use Threats and Documents to Control Borrowers
Investigators seized weapons and identity documents including babies' passports during raids on suspected illegal money lenders. Victims have described threats of violence that led some to attempt suicide and pay back far more than originally borrowed. Officials received 597 reports of illegal lending in the past year resulting in 33 arrests and six convictions.
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A samurai sword, meat cleaver and babies' passports were among items seized in raids by investigators targeting illegal money lending, according to material shown exclusively to the BBC. Illegal money lenders charge high interest rates and use intimidation against borrowers.
Officials said the public often hesitates to report such lenders because of fear of violent repercussions. One team that investigates these cases has noted an increase in lenders who first pose as friends or acquaintances. A woman identified only as Sarah borrowed money after being declined for a credit card.
She initially agreed to repay £100 after borrowing £50 but faced escalating demands when payments were late. " Sarah, from Yorkshire, said she had no idea what the lenders looked like but they had her address. She ended up repaying £20,000 after borrowing less than half that amount.
Sarah said the pressure contributed to a decline in her mental health, several suicide attempts and periods of homelessness. "When I look back, I'm filled with shame," she said. " Sarah added that some of her friends had taken their own lives after similar debts and that fear of being labelled a "grass" kept many victims from speaking to authorities.
Investigators said lenders often retain passports and other identity documents to prevent borrowers from travelling or obtaining employment. "There is always some sort of control measure by the loan shark to get you to pay," one team leader stated while showing a folder containing gold jewellery and various passports.
