17 September 2008
Vulnerable people in Norwich are being targeting by loan sharks offering them credit without checking their ability to repay, it has been claimed. According to the Norwich Evening News, authorities are on the lookout for a team of suspected loan sharks working in the area. The newspaper reports that there has been a 20% increase in the number of people calling the city's debt helpline for advice in the past month. Many have been turning to doorstep lenders for personal loans to tide them over, but debt charities warn against this. Andy Cobb, Norfolk's Citizens Advice Debtline manager, said: "People can borrow from them without their credit being checked and then it is just a downward spiral." According to Mr Cobb, residents in Norfolk have wracked up average debts of £34,000 each on credit cards and personal loans. Meanwhile, an investigation by Channel 4 has revealed that consumers across the country are being offered pay day loans as short-term alternatives to personal loans without adequate checks on their income.