Families urged not to borrow from loan sharks

HOUSEHOLDS struggling to cope with the financial pressures of Christmas because of recent budget cuts are being warned to avoid resorting to unlicensed moneylenders by the National Consumer Agency (NCA).

According to the NCA, a quick loan can result in people falling into the trap of unmanageable debt in the new year. They said that without the protection of the Financial Regulator’s code for licensed moneylenders, people who use unlicensed moneylenders are left extremely vulnerable if they cannot afford to pay the loan back.

NCA assistant director of public awareness and financial education, Áine Carroll, said it is vitally important for people to know the difference between ‘loan sharks’ and licensed moneylenders. “Make sure not to borrow from loan sharks — who are criminals — no matter what the situation, because if you can’t pay those people back you have no protection.”