GORDON HENDERSON MP

25th July 2011
MP warns constituents about the dangers of loan sharks

Gordon Henderson is encouraging his constituents in Sittingbourne and Sheppey who are facing financial hardship, not to be tempted into using illegal money lenders. Instead he is urging them to join a credit union, such as Kent Savers.

Illegal money lenders, or ‘loan sharks’, are those who do not have a licence to lend from the Office of Fair Trading (OFT). A way to check if someone has a licence is by using the online Consumer Credit Register search on the OFT’s website or, if people do not have access to the internet, to contact Mr Henderson’s office.

Dangers of loan sharks can include a lack of paperwork making it difficult to keep track of how much money is owed, high rates of interest and arbitrary added 'charges' to loans, the holding of passports and bank cards as ‘security’ and sometimes missed payments can even lead to threats and violence to get more money. Often people involved in illegal money-lending tend to be part of other criminal activities, too.

Mr Henderson would like to make the people of Sittingbourne and Sheppey aware of a safe alternative to loan sharks, Kent Savers credit union. Kent Savers is an ethical financial service that specialise in fair and friendly saving and borrowing for its members. Owned and controlled by members, authorised and regulated by the Financial Services Authority and with deposits protected by the Financial Services Compensation Scheme, members can rest assured that their money is safe and that loans will be made at a fair rate of interest.

John Fowler, Chief Officer of Kent Savers welcomed Gordon Henderson’s membership,

“Gordon is setting an example and helping us to ensure that the people of Sittingbourne and Sheppey are aware of the benefits of using ethical financial services rather than being exploited by the loan sharks who are so widespread in this area.

“We are ‘not-for-profit’ – we offer the very best services to local people and are proud to do so.”

Mr Henderson added,

“I am concerned that as more and more local people face financial hardship that they will be tempted to use back street loan sharks. I would strongly urge them to resist the temptation, because taking loans from such people can often end in disaster.

“There are other options open to people and one such option is to join a credit union, such as Kent Savers.

“But Kent Savers can only offer a service if it attracts more investors. A successful credit union is in all our interests which is why I have become a member. I very much hope that other local people will follow my lead.”