Combating Loan Sharks

shark

Borrowing money from Loan Sharks is a very risky business, especially if you find yourself in a position where you cannot make your repayments. Loan Sharks do not believe in sympathising with your situation; they want there money and will do whatever it takes to get it.

In an attempt to put a stop to Loan Sharks, a project called ‘The Illegal Money Lending Project’ was launched in September 2004. Birmingham City Council set up operation in the Midlands and Glasgow set up operation in Scotland. The aim of the project was to:

Establish whether there were loan sharks operating
Bring them to justice through prosecutions and/or ensure complaince with the legislation
Where loan sharts were prosecuted: to promote those penalties to act as a deterrent for potential loan sharks
Where loan sharks were removed from an area: to fill the vacuum created with appropriate and alternative methods of legal money lending.

Since the project began, 27 defendants have been reported for lending money illegally and prison sentances have reached a total of 10 years for illegally lending money, and a total of 10 years for possession of fire arms!

The project has also reduced crime as some of those who borrowed money from loan sharks found themselves committing crimes to enable them to pay the loan shark as well as putting food on the table.

It has also been necessary on occasion to put people in witness protection programmes for their own safety.

Launching of projects in other cities is now a key part of the Governments Financial Inclusion Strategy and the Treasury now funds the projects.

Any information given over to the project is done in the strictest confidence. The introduction of a confidential 24/7 hotline has been introduced for the help and support of those in need. The number is 0121 693 1122. Any further information can be obtained by contacting Birmingham City Council.

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Financial Education in Schools

A year ago, we wrote an article titled “Debt of the Future” regarding teaching our younger generation about financial matters in schools. It would now seem that secondary school pupils may be offered lessons in money management as a part of ‘personal, social and health education’ (PSHE) classes.

From 2008, there will be an addition to the curriculum called ‘ecomnic well-being and financial capability’. This will be aimed at 11-16 year olds to teach them about personal finance.

Gavin Shreeve, chief exective ifs School of Finance is not over optimistic about the new section of the curriculum:

As part of the curriculum reform package, ‘economic well-being’ will form part of the existing Personal Social Health Education’ (PSHE) subject rather than being a stand alone course. The study of PSHE will remain optional and non-examinable and the economic well-being component will be just one samll strand of a very diverse subject.

This is a fair opinion, as still some schools will not recieve the lesson’s as not all schools teach PSHE, therefore, children at such schools will still miss out on the subject.

With all the advertising that we see on our TV’s as well as the internet; gambling websites, game site’s which encourage children to pay for additional extra’s in online games, you would think the Government would understand the importance of making such a subject compulsary rather than optional.

Gavin Shreeve say’s they will still be calling on the government to place personal finance on the core curriculum along with history, geography and modern foreign languages, ensuring all students have the option of studying personal finance.

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