Question
In light of the continuing cost of living pressures continuing to face many low income households, could PSNI outline any trends in the prevalence of illegal money lending in local communities and if so, what action can PSNI take to monitor and counter such moneylending including where appropriate in conjunction with other relevant bodies?
Answer
Illegal money lending is a cover all phrase. However it is a criminal offence to lend money to an individual without a license from the financial conduct authority, contrary to Section 23 (1) Financial Services and Markets Act 2000. Although this criminality may be reported, recorded as intimidation, blackmail, threats, assault or investigated as money laundering. This criminality is predatory and seeks to exploit the more vulnerable in our society, or at a time when there is a crisis and therefore traps victims in a cycle of debt and powerlessness.
The Police Service of Northern Ireland has not identified any trends in relation to an increase in this type of criminality. However any criminality linked to illegal money lending is vastly underreported, as it is challenging to get victims to report this activity either because of the stigma associated with borrowing money or the fear of reprisals or they feel under threat and feel they would need to leave their community. When victims are unable to make repayments, they may be drawn into criminality on behalf of paramilitary groups, storing items including drugs therefore preventing victims seeking help from law enforcement.
Paramilitary Crime Task Force (PCTF) continue to robustly target the full range of paramilitary criminality including drugs, and as a result (PCTF) have uncovered evidence of money lending.
Police continue to work with the community to identify those involved in this criminality at an early stage and also work with a number of partners to include Northern Ireland Housing Executive, foodbanks and community fridges, Northern Ireland Association for the Care and Resettlement of Offenders (NIACRO) (Base2), Christians against Poverty (CAP) and other community groups including addiction support and women's groups.
During September 2022 a ‘Stop Loan sharks’ campaign ran on social media encouraging victims to contact police on 101 or crime stoppers anonymously, to report this type of criminality and signposting to Advice Northern Ireland (independent advice network, free, confidential). They can signpost victims regarding debt support, benefits / crisis loans.
The current Ending the Harm campaign by the Executive Programme on Paramilitarism and Organised Crime (EPPOC) launched in June 2021 and is focused on illegal money lending. A further stage of this campaign is currently being developed to highlight this form of criminality and signpost victims to support agencies.
Les Allamby