It has been revealed recently that the lack of credit card availability for many consumers could spell good news for unscrupulous loans sharks out there, as an increasing number of consumers may find themselves having to turn to loan sharks when they are struggling financially simply because they cannot see any other option.
Since the onset of the global credit crunch the availability of credit cards has dropped through the floor for many consumers, especially those with low incomes or bad credit, and in the current economic climate many may find themselves having to look elsewhere if they are desperate to get finance.
Industry experts are worried that as credit card and loan availability continued to dwindle during the recession a rising number of Brits will turn to loan sharks for their financial needs, and could then find themselves getting burned as a result of the crippling interest that these sharks demand even for relatively small loans.
Whilst strict regulations and laws have been put into place with regards to loan sharks experts reckon that with the rising number of traditional lenders being more stringent with lending this practice is actually on the increase.
A recent report from the New Local Government Network claimed: “The diminished availability of regulated sub-prime credit is creating conditions where a sizable number of people have little option but to borrow from illegal sources. At least 165,000 people already use loan sharks in the UK and we can expect the number to rise sharply.”
It was also claimed in the report that there are certain areas where consumers are more likely to fall victim to loan sharks, and these areas were Stoke On Trent, Gateshead, and Manchester.
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