Loan sharks have beaten people and held guns to their heads to collect unpaid debts, it was revealed today.
Concerns have been raised about the violent tactics used by some money lenders when repayments are missed as well as the spiralling levels of personal debt.
Debt advice charities revealed the extent of the problem today as they began moves to protect vulnerable people from loan sharks and unscrupulous high interest finance companies.
In some cases, people have been assaulted and threatened with firearms when they cannot pay.
Alan Rapley, manger of debt charity enQuire, in Loughborough, said he had been shocked by some people's experiences.
He said: "In some cases, we've dealt with people who have been beaten up when they cannot repay loans. In two cases, they have been threatened and have had guns put to their head."
The Clockwise Credit Union, in Leicester, has 1,700 members who each take out cheap loans.
General manager George Puszczynski said borrowers in the city had also faced violence from debt collectors. He said: "Some people we have dealt with have been in fear for their lives after being threatened.
"Often they are so scared they don't report it. A credit union will offer safe access to finance as an alternative to people who offer finance at immoral and super-inflated rates which can't be paid."
Advisers from the Citizens Advice Bureau in Loughborough say they are helping 450 people who have stacked up debts of about £6,750,000.
Leicestershire County Council, town churches and charity en Quire is working with Clockwise to open up a savings and loan scheme in Loughborough.
They aim to offer a safe and reliable source of credit for borrowers.
A credit union is a Government-regulated not-for-profit organisation which members can pay cash into as well as borrow from at set interest rates.
Loughborough Churches together organisation has donated £1,000 to the credit union.
Group spokesman Roy Davies said: "We are fully behind the credit union. Debt is a social issue that touches so many people and we want to help people find a way out of money problems."
Money advice case worker Ian Dennis, of the Charnwood CAB, which is in Loughborough, said: "When I came here four years ago, the average debt of people seeking our help was about £5,000. Now it's £15,000. The most debt I have seen in any case here is £170,000.
"Others come to us with debts of £1,500. Whatever the amount people owe, they struggle."
Source: Leicester Mercury
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