1. Natalie Barker, LIAISE Officer The Illegal Money Lending Team Welcome to your session Please complete the loan shark quiz in front of you before we start

2. Are you on Social Media? Please follow us on Facebook we are Stop Loan Sharks Project And on Twitter @loansharknews 2

3. An Introduction

4. Introductions Please share Your name The organisation you represent Your role What would you like to find out today? One word to describe a SHARK

5. What is a Loan Shark? A loan shark is someone who lends money without the correct permissions under Section 19 and 23 of the Financial Service and Markets Act These licences are issued by Financial Conduct Authority It is a criminal offence and carries a maximum sentence of two years in prison. Who enforces this legislation?

6. England Illegal Money Lending Team Set up in 2004 as a pilot project Hosted by Birmingham City Council Employs 70 members of staff Two distinct functions Investigators and LIAISE Officers Agile workers across England

7. Liaise Officer’s Role Awareness – Linking in with local authorities current safer community strategies and influencing senior policy makers Intelligence – Gathering intel, liasion with police and other intel agencies Support – providing victims with a 1:1 support mechanism right up to court hearing Education – working with local communities to highlight the dangers of loan sharks, training, talks etc

8. The Enforcement side Prosecute Loan Sharks Manage the hotline 24/7 0300 555 2222 All Investigators are from Police, fraud, Trading Standards and customs backgrounds Two seconded Police Officers Two financial investigators who use the Proceeds of Crime Act (POCA) An Intelligence Cell Legal Team

9. Shark Characteristics Feared Work alone Predatory Confident swimmers Pick on the smallest, weakest fish Feared by all Circle their prey before attacking Abundant in warm waters Extremely sensitive sense of smell and hearing... 2.4

10. Loan Shark trends No licence No paperwork - “you owe me this much” No receipts for payment Violence, intimidation and blackmail if repayments are missed Loans to anyone (under 18’s included) Take cash cards and other securities Rarely advertise, find clients by word of mouth Repayments of at least twice the original amount, often with high charges for defaulting

11. Loan Shark behaviours Building a client list through social networking (Facebook and Twitter) – the pub, schools gates, taxi rank... Can be claiming benefits whilst making a lot of money Frequently not paying any tax on their income Often involved in other criminality, and interest fuels capital for this Loan Sharks are getting smarter – no longer just a scrap of paper or exercise book but well-hidden memory sticks...

12. Friend, mate, pal... Loan Shark?

13. “Other” charges Money laundering, Drug possession, Intent to supply drugs, Possession of other people's property (passports),Possession of firearms/prohibited weapon, Affray, Criminal damage, Blackmail, Perverting the course of justice, Fraud - benefit Fraud and false representation, Acquiring criminal property, Concealing criminal property, Possession of counterfeit goods, Intent to supply counterfeit goods (DVDs, clothes and cigarettes), Deception, Rape, Kidnap and Assault

14. The Myths Unlicensed money-lending is not illegal; It is – you must have a Consumer Credit Licence from the OFT If you borrow from a loan shark you are breaking the law; Not true! It is the loan shark who is breaking the law… You have to pay back what the loan shark says you owe; Not true! – a loan made by someone without a licence is unenforceable

15. The Myths It’s a victimless crime; Not true! Threats, bullying, intimidation – loan sharks will use force. Victims can also get involved in petty crime to pay back their loan Loan Sharks are offering a reasonably priced service to people who need it; False! On average, a Loan Shark charges three times the cost as a legal money lender. Interest rates of between 8,000% and 131,000% have been uncovered…

16. Intelligence via partner agency following a month of action in area Victims were his colleagues working as Chef’s and Cleaners in local restaurants. Pleaded guilty – Illegal Money Lending, Blackmail, assault with an offensive weapon Sentenced to 28 months in prison Joaqim Boal - Hartlepool

17. Desmond Cross Sentence in January 2015 along with partner and collector Belinda Hughes 18 Months suspended sentence and 3 month curfew. Co defendants will also have to do 80 hours unpaid work Lent £30,000 to 83 customer £18,000 outstanding at time of arrest Operated in Country Durham had million pound Company which he took £7K from to start loan business

18. Loan Shark profile Of our prosecutions, 80% male, 20% female The friend of a friend “pay me back whenever” The work colleague The rented debt The debt that is passed on The cage fighter The 80 year old woman

19. Who is affected? Estimated 310,000 UK households using illegal money lending This equates to 12% of households in the most deprived areas Convert households to people and that is about 732,000 men, women and children living in the shadow of loan sharks People repay £700 million per year to loan sharks

20. IMLT achievements to date Over 329 prosecutions Over 26,000 victims have been helped Over £64 million illegal “debt” wiped out Over £27 million worth of assets being investigated Prison sentences totalling 206 years for illegal money lending and associated crimes (plus Indeterminate Sentence for Public Protection)

21. Quiz Answers! Loan Sharks are illegal because... They don’t have a licence Loan Sharks are prosecuted by... Trading Standards If you take out a loan with a loan shark you must pay it back... False You have to give evidence in court... False (unless you are giving a statement, rather than info) The highest rate of interest... 131,000 % !!

22. Information and Intelligence

23. The scientific part Information is the passing of knowledge from one source to another Intelligence is the end product of a process by which information is checked and compared with other information and is then used to inform decision making In order to proceed with an investigation, information must be turned into intelligence

24. What would you do? The following DVD is an actor who is re-telling the situation faced by a real-life Loan Shark victim Please take notes on the following; What facts can you gather? What are the key pieces of information/intelligence What questions might you ask if you were undertaking an interview?

26. Your Organisation

27. Scenarios you might encounter Split into groups Each think about your scenario Report back on the following: How would you approach the situation? What are the issues for the Organisation? What re-active strategy could be put in place? What pro-active strategy could be put in place?

28. Remember Illegal money lending is a indoor unseen crime It is notoriously well hidden People with debts are more likely to be stressed Multiple debts (including rent arrears) are common Quality of life is often poor – lots of symptoms Trapped in a payment cycle, both illegal and legal Desperate for help, unable to shout out Fear and reprisal is number one on the list of why people don’t want to come forward...

29. Making a Difference

30. Make a difference – as a Stop Loan Sharks Campaign partner! What actions will your organisation take? How will you measure the success? Who will be your Campaign contact? Please also use the handout for some simple and effective ideas

31. 31 Liaise Officer Contact Details for Middlesbrough, County Durham, Newcastle upon Tyne, Northumberland and North Tyneside Name: Natalie Barker Tel: 07557 203 149 E-mail: Natalie.Barker@birmingham.gov.uk

32. Any questions?

33. Evaluation and Feedback