CCTA comment on CSJ report on tackling illegal money lending in England

Commentary | 21/03/22

We welcome this new report and this study into the scale of illegal money lending.

Even before the current cost of living crisis, we have talked about the increasing problem of loan sharks and the real pain they cause to families across the UK.

It is now estimated that over one million people are relying on illegal lenders.

The CCTA has highlighted the sharp decline in the supply of regulated credit in recent years and what this will mean for a group of individuals that struggle to borrow elsewhere.

While we agree that Credit Unions and other community schemes need support, experience shows they can’t fill the space left by commercial lenders leaving.

Families need access to a blend of commercial and not-for-profit lenders providing financial products that meet their needs. Without this, there will be a growing number of these horror stories of illegal lending.