Loan sharks prey on families hit by pandemic

Moneylenders have been targeting working class areas in Galway where hundreds of people have lost their jobs in the lockdown, encouraging them to take out loans with exorbitant interest rates.

Deputy for Galway East Sean Canny said he had received several reports of estates in the city where leaflets had been distributed recently by legitimate loan sharks.

“These people are licensed so they are not doing anything illegal but I do think it’s immoral in these times and my advice is to ignore money lenders,” he stressed.

“We have credit unions where people can go to for advice and for loans and we have MABS [Money Advice and Budgeting Service] which can provide advice that maybe they don’t need more money but may need to manage their budget better.

“People don’t make the best decisions when they’re stressed but I would really urge them not to go down this road because they can charge interest rates of 187% which is really fleecing people.”

Paul Bailey, Head of Communications at the Irish League of Credit Unions, said they have also been getting reports of leaflets being dropped by moneylenders in working class areas.

See full story – and 23 pages of coverage on the Covid-19 crisis in Galway – in this week’s Connacht Tribune, on sale in shops now, or available to buy as a digital edition via our website www.connachttribune.ie. The Tribune can also be ordered as part of your shopping delivery from most outlets now.