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Man in deep with illegal lender, helped by team
ANDREW was just being helpful when he loaned a desperate pal £40, but faced with paying his own debts he soon found himself in deep with a loan shark.
With rent arrears mounting, the same friend recommended a man who could help, and a relieved Andrew borrowed 30.
But the following week he was unable make a 5 repayment and from then on he was at the mercy of his loan shark.
The lender would go with him to a cash machine on the day his benefits were paid and force him to hand over money. Andrew fell further behind with his rent.
Around the same time the loan shark was forcing another defaulting client to shoplift goods in lieu of payment. The scam only started to crumble when the reluctant thief was caught in the act.
Andrew revealed his problems to the Money Advice Team at Sheffield Homes and his evidence helped bring about the conviction of the illegal lender on a number of charges.
An investigation into his accounts revealed unsuspecting Andrew was subject to a punishing "double bubble" system - every time he failed to pay, the total doubled, ensuring he would never be out of debt.
Advice team members Alison Whitehead and Janice Bell also helped a working woman in her 20s who borrowed from a loan shark when she was setting up home with her boyfriend.
For months she made repayments, but the end of the loan was never in sight. Eventually the loan shark simply disappeared.
Alison said: "He was on to such a good thing he would only have stopped collecting because he was forced, we think he is probably in prison for some other offence."
Alison says most loan sharks avoid all talk of interest, or settling the loan, and keep the figures as vague as possible.
And if a client manages to complete repayments they are pressured into taking out another loan straightaway.
Andrew's name has been changed.
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Weather for Sheffield
Wednesday 23 May 2012
Today
Sunny spells
Temperature: 13 C to 23 C
Wind Speed: 7 mph
Wind direction: North east
Tomorrow
Cloudy
Temperature: 11 C to 22 C
Wind Speed: 9 mph
Wind direction: North east
