Cost of living - help & advice

Loan sharks are illegal money lenders who exploit people, including those on low incomes. Unfortunately, as the cost of living rises, more people are falling victim to loan sharks, sometimes with shocking consequences.

We want to let you know that if you’ve borrowed money from a loan shark, help is out there. Stop Loan Sharks is an organisation that prosecutes illegal money lenders and provides support for borrowers. We asked Catherine Wohler from Stop Loan Sharks (pictured below) to tell us more about the issue and how to get support if you or someone you know has been affected by loan sharks.

How big is the problem of loan sharks?
It’s widespread. A report by the Centre for Social Justice in March 2022 estimated that 1.08 million people in England are currently using illegal money lenders. That’s 2% of the population and this was before the cost of living crisis really kicked in.

Are you seeing more cases since the cost of living crisis hit?
For the first time victims of loan sharks are telling us that they’re borrowing to buy food, fuel and gas and electricity. Historically, people have borrowed to cover everyday living expenses, but these have been one-off items, for example, a tyre for the car or a new washing machine.

When we hear ‘loan shark’, we might imagine a tough-looking, intimidating man, but that’s not always the case, is it?
Absolutely not. Last year, one in five of the people we arrested were female. We’ve arrested people well into their seventies for illegal lending.

Loan sharks are often the person you least expect. They could be a mum at the school gates or someone you work with. They could be someone you’ve known for years down the pub and chatted to occasionally. Most people, when they take a loan, genuinely believe they’re borrowing from someone who’s helping them out.

What should set off alarm bells that someone’s a loan shark?
Any loan without paperwork is dodgy because all authorised lenders will give you paperwork. This should include things like the interest rate, what happens if you miss a payment and the length of the loan. Loan sharks don’t give you this information because they want to keep you in the dark.

How can we check if a lender is genuine?
Genuine lenders must be authorised by the Financial Conduct Authority (FCA). You can search for a name or company to check they’re registered with the FCA here.

If you’re in any doubt just give Stop Loan Sharks a ring and we’ll help you sort out if they’re legitimate or not. Our 24/7 hotline is 0300 555 2222. We also have Livechat on our website, available Monday to Friday 9-5.

Have you got any examples of people who’ve borrowed money from loan sharks and the effect it’s had on their lives?
We helped a woman called Kelly who had a terrible experience with a loan shark. She has four children, she was working and earned £1,090 a month topped up with Universal Credit. One day, the kids wanted different food than she had in the fridge. They were nagging her and she’d had a bad day. Her sister’s friend offered to lend her £100 so she could buy the kids some treats. She said, “Oh go on then, it’ll give me a bit of peace – it’s only a £100. I’ll pay it back.”

Her sister’s friend turned out to be a loan shark. She wanted £320 back. When Kelly paid her back on pay day, it left her short, so she had to borrow money again. The debt spiralled and it got to the point where Kelly had borrowed £2,500 in small loans - but she’d paid back £26,000. The loan shark was still saying that she owed £43,000. In that time, Kelly had isolated herself from her family and friends. She was arguing with her partner because he didn’t understand where her money was going. And from her £1,090 from her wages, the loan shark was taking £900 every month.

Kelly shut down and it got to the point where she was seriously considering taking her own life. She couldn’t see another way out.

Talking to her housing officer was the turning point. When she told them about her situation, they supported her to contact us, we arrested the loan shark and from then on Kelly was free.

What advice would you give someone who’s been offered a loan by someone they suspect may not be a legitimate lender?
If you’ve got suspicions, it isn’t worth it. Think about Kelly, think about how a £100 loan very quickly turned into a £43,000 debt. It’s so easy to get in with a loan shark, but it’s so hard to get away from them.

Are there other sources of credit they could use?
Credit unions are brilliant. They are ethical, affordable, legal lenders. The amount of interest they charge is capped by legislation. They treat people as individuals. It’s not ‘computer says no’. They can offer small amounts of money. Sometimes banks only want to lend large amounts, but credit unions will lend £100-200. Search for your local credit union here.

Should you ever borrow to get out of debt?
No. Borrowing more money will add further interest to your debts. It’s much better to talk to your creditors and get free debt advice from charities Stepchange, PayPlan or Citizens Advice.

Say I’m on a low income, I’m struggling to make ends meet. I was approached by someone who offered me money. I took out a loan because I was desperate and now they’re charging me massive rates of interest and threatening me and my family. Things feel desperate – what can I do?
The best thing you can do is talk to Stop Loan Sharks. We’ll talk to you in confidence. You could ask your housing officer to support you to make that first phone call. The idea of reporting a loan shark can be scary, but we’re very good at looking after people. I’ve been doing this job for 15 years and I’ve never had anyone say to me: “I wish I hadn’t reported the loan shark.” But I’ve had plenty of people say: “I wish I’d reported the loan shark sooner.”

We don’t judge. Whatever it is that has happened, we will have seen it all before. You’re not going to be forced to do anything you don’t want to do. You don’t even have to tell us your name if you don’t want to. Just let us tell you what support we can offer. Then you can decide what you want to do next.

If you could sum up your main messages for customers about loan sharks, what would it be?
If you’re in the grasp of a loan shark, help is available. Don’t suffer alone. Unfortunately, people think that they can pay loan sharks off but in most cases you can’t. We’re here to help. Please speak out.

My other message is, if you haven’t borrowed from a loan shark please be careful. Buyer beware: if it looks too good to be true, it probably is.

More information:

• If you’ve borrowed from a loan shark or are worried about someone else, Stop Loan Sharks is there for you. Call them 24/7 on 0300 555 2222 or start a Live Chat by clicking on the chat icon in the bottom right hand corner of their website. This service is available 9am-5pm, Monday to Friday.
• If you need help with money, Curo’s Money Advice service provides help for residents. Please don’t be afraid the get in touch if it's your first time. Our friendly and experienced team can help with managing debt and accessing the correct benefits. They have access to grants and funds that you may not know about. The average amount each customer saves through using the service is £4,446. Call the Money Advice service on 01225 366000, or email: customeraccountshelp@curo-group.co.uk

Curo Benefits Advisor Tania Reason explains the support that older customers may be missing out on and how we can help

As a Benefits Advisor at Curo, I love that I can help to increase our customers’ incomes. Sometimes people come to us and they’re really struggling. But I can support them to access the benefits they’re entitled to, so that they don’t have to worry anymore.

I can help people over the phone or we can make an appointment to see them in person. Lots of older people prefer to meet up so that we can go through their paperwork together. I’ll find out what they’re entitled to and support them to apply.

I’d say 8 out of 10 people who come to us aren’t claiming the benefits they’re entitled to, simply because they don’t know what’s available.

The most common benefits older people miss out on are Pension Credit and Attendance Allowance, which helps with extra costs if you have a disability. People claiming Attendance Allowance can get up to £92.40 a week to help with personal support.

Pension Credit acts as a gateway benefit. So, if you get Pension Credit, you could be eligible for full Housing Benefit and may not have to pay Council Tax. Pension-aged people who are entitled to Pension Credit and a disability payment – for example Personal Independence Payment or Attendance Allowance - could get up to £1,350 in Cost of Living Payments this year. 

I can also look into whether customers can get the Warm Home Discount. And a lot of people don’t know about the Cold Weather Payments - you could get £25 for each seven-day period of very cold weather between 1 November and 31 April.

Another myth is that you can’t claim benefits if you’re working, but if you’re on a low income, you could be entitled to Universal Credit. The threshold for Universal Credit is increasing, so even if you weren’t eligible last year, you may be eligible this year. If you get Universal Credit, you can get the £900 Cost of Living Payment. Universal Credit also gives you access to things like cheaper broadband. So it’s worth claiming Universal Credit even if you only get 1p – just get in touch with us on the contact details below and we can do a quick check. 

Older people can be proud about their finances and we understand that it’s a really personal topic. But our service is completely confidential. If you’re worried about money, we’re here to help, without judgement. I always tell older people that they’ve worked hard all their lives, they should claim what they’re entitled to. Please don’t be afraid to get in touch. Call the Money Advice service on 01225 366000, or email: customeraccountshelp@curo-group.co.uk

Victor da Cunha, Curo’s Chief Exec, has urged customers who are facing financial hardship to get in touch with our Money Advice service during the Cost of Living crisis this winter.

In an interview with Somer Valley FM, Victor spoke about his concern for residents. “One of our single biggest worries is how the Cost of Living crisis is going to affect our residents over the next few years. I think the winter’s going to be tough, but none of us really know how the economy’s going to play out. And, clearly, there will be a lot of anxiety from our residents about how they’re going to make ends meet.”

He said the Money Advice service is there to help people who are worried about their finances. “They are a fantastic team,” he said. “They’re incredibly caring people and they treat individuals with discretion and compassion.

“Residents should not feel embarrassed or stressed about coming to talk to us in confidence. The important thing is that they don’t allow money worries to affect their wellbeing, or bury their head in the sand and wait for it to all go away. It won’t go away unless it’s confronted.

“So my plea is, get in touch, don’t let problems mount up ­– come and speak to us. You are not alone.”

Listen to the full interview below.

There’s more advice in episode one of Curo’s new Cost of Living podcast, which features an interview with Sarah Rogers, Customer Accounts Manager from the Money Advice service. You can find our podcast on Spotify, Amazon Music and Audible. 

Or you can listen here

The Cost of Living crisis is making life even tougher for survivors of domestic abuse. If you are a Curo customer who is affected by domestic abuse, there are things we can do to help you.

New data from Refuge highlights how the cost of living is impacting survivors of abuse. The domestic abuse charity surveyed Refuge colleagues who work directly with survivors.

73% of colleagues surveyed said that the cost-of-living crisis is increasing barriers to leaving a perpetrator
75% of respondents said the crisis meant survivors needed to use food banks for essentials
92% said it is pushing survivors further into debt

What is economic abuse?

Economic abuse is a common form of domestic abuse. According to Refuge, one-in-five adults in the UK (most of whom are women) experience economic abuse. The perpetrator may limit the survivor’s access to money or resources, take their wages, stop them from working, or put them in debt without their knowledge or consent.

This can make it harder for the survivor to leave their perpetrator. Perpetrators often control household income, making it more difficult for survivors to access the money they need to leave.

How we can help

Our Money Advice service colleagues have had training in debt and domestic abuse. They can support customers who are survivors of domestic abuse to get the help they need.

Free debt advice provider PayPlan are working with Refuge to support survivors of domestic abuse to become debt free. The collaboration helps survivors access and receive free debt advice.

Curo’s Money Advice service can refer survivors of domestic abuse for help through PayPlan’s Secure Referrals Hub.

Don’t suffer in silence, call our Customer Accounts team. We’ll listen and see what options are available to you to help with your money worries. Pick up the phone and call 01225 366000. Or you can email customeraccountshelp@curo-group.co.uk

The councils in the areas in which Curo has homes or services have added cost of living support and information to their websites.

Click on your council from the list below to find out about the help available in your area:

BANES

Bristol

North Somerset

South Gloucestershire

Mendip and West Wiltshire

Cotswold District

Camping stoves, candles and electric heaters are growing in popularity as people turn to alternative sources of heat and light in a bid to save money on their energy bills. But using these can lead to fire safety risks.