22 November 2006
The Trading Standards Institute (TSI) has issued a stark warning to consumers, urging them to not fall for the charms of unscrupulous money lenders in the lead up to Christmas.
TSI is particularly concerned that those who have suffered with the collapse of Farepak might be persuaded to visit loan-sharks in order to pay for Christmas presents for their loved ones.
If consumers resort to relying on loan-sharks, they could become subject to extortionate interest rates, inescapable financial debt and possible threats of violence when they cannot afford the repayments.
Ron Gainsford, chief executive of TSI, said: "Loan sharks prey on the most vulnerable people in society, bringing misery and fear to those who borrow from them.
"The pressure to spend at Christmas is greater than ever, adding to the spiralling level of debt in the UK. And this year it is even worse for the thousands of people who lost the money they had saved up through Farepak so they could afford their Christmas spending.
"We urge people to avoid running up hefty debts and steer clear of illegal money lenders," Mr Gainsford concluded.
This week is National Consumer Week and has been themed "Hey Big Spender!" to reflect the growing amount of Britons suffering from debt. The TSI, along with many other consumer groups, are using this week to raise consumers' awareness on the issues surrounding debt and how to avoid it.
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