SVP warns of lenders preying door to door

MONEY LENDERS are knocking on doors with cash in their hands preying on people desperate for cash in the run-up to Christmas.

St Vincent de Paul said it is extremely concerned by the targeting of vulnerable people by such lenders.

Stuart Kenny, spokesman for the charity, said these lenders, operating legally, were targeting disadvantaged areas. He said they are in the business of “seduction” and turn up at houses with “fistfuls of cash”.

People, he said, are so desperate, they don’t ask the rate of interest, and even if they are told, they may not understand the long-term implications.

“Someone might be told they have to pay back €20 a week and while it doesn’t sound like a lot, in real terms it all adds up and once they are in the grip of these money lenders it is very difficult to get out.”

He said often people start out with small loans, but they are urged to borrow more and more, and get into big debt. Mr Kenny urged people not to borrow from these lenders.

Credit Unions, he said, have money to lend and were actively sitting down with people to help them out of their situation.

“We ... have been consulting with MABS and Credit Unions to try and steer people away from them [lenders] and help them to realise there are other ways to get money,” he said.

“Calling to a house with cash in hand, this is real seduction stuff, and often people feel there is no other way.”

Speaking of legislation introduced yesterday to ensure consumers are told about the rates of interest, Mr Kenny said: “Even if people are told they are so vulnerable they may still take the money and may not even understand the rates.”

Southern regional president of the St Vincent de Paul Society Brendan Dempsey said one woman borrowed to buy a fridge and couldn’t make the last payment. It was repossessed, then she was given another loan to buy it back and “she ended up paying for two and a half fridges”.

Mr Kenny said the frightening thing was that these were the legal lenders.

“Illegal operators are back now too. They are known to hold onto social welfare books, tell the person to go and get the money, wait outside and take it.”