All CFA members are regulated by the Financial Conduct Authority and adhere to a strict set of rules. Unlike illegal money lenders our members carry out stringent checks to ensure the customer has the means to pay the loan back. In addition, from the outset it is made clear and transparent how much the customer is borrowing and how much they will need to pay back. The amount of interest you pay back will never be more than the original amount you borrowed and the fees are capped to give you reassurance.
If you do experience difficulty in making payments, our members will work with you to ensure you can manage your finances and if necessary direct you to other sources of financial advice. Unlike criminal illegal money lenders who are more inclined to resort to violence and intimidation to recover their loan.
This knowledge and clear information gives the customer the ability to make the right choice for them. Short-term lending is not suitable for everyone, but they provide access to the credit market for some people who may not be able to borrow because of a limited credit history or find this product suits their needs. It is important to understand that millions of people use short-term lending responsibly each year for a variety of reasons without getting into financial difficulty. This market exists to give people the choice to decide how they manage their finances or to cope with that unexpected bill.
Tyrones situation in Coronation Street should serve as warning to anyone considering using an illegal money lender. These individuals can resort to intimidation and violence to get their money back. You could end up paying back your loan many times over and evidence suggests it can have a detrimental impact on your health and wellbeing.
The risk of using unregulated lenders and loan sharks is clear. If you are considering taking out a short-term loan visit the Consumer Finance Association or the Financial Conduct Authority website to find an authorised lender.
This view is backed up by the Illegal Money Lending Team who are at the front line and see the distress loan sharks cause.
Tony Quigley head of the Illegal Money Lending Team said:
Loan sharks are a scourge on our communities and should never be used. They often pray on the most disadvantaged in society, causing devastating problems and tearing their lives apart. It is a despicable crime and we will continue our work to combat illegal money lending. We would urge anyone with information about loan sharking or victims of loan sharks to contact the team on 0300 555 2222.
If you are in difficulties with any aspect of your finances visit the Money Advice Service for impartial advice.
PIERRE -- A Georgia company that provides short-term loans has contributed about $1.7 million to a South Dakota group pursuing a ballot measure that opponents say is an industry-backed attempt to insert a loophole allowing unlimited interest rates into the state constitution.
The company, Select Management Resources LLC, was the sole financier in 2015 of South Dakotans for Fair Lending, a political committee pushing for the amendment to cap interest rates in South Dakota at 18 percent annually but allow higher ones if the borrower agrees to them.
Campaign finance documents released this week show the financial connection between the amendment campaign and the short-term lending industry. The amendment group spent more than $1.5 million circulating petitions to get the measure on the November 2016 ballot.
Select Management Resources, based in Alpharetta, has auto title lending locations in South Dakota under the name North American Title Loans. The company also is in a legal fight over whether Attorney General Marty Jackley should rewrite his explanation of a ballot measure that would cap interest rates at 36 percent annually, without the exception.
Payday loan opponents argue the industry-supported amendment would actually cement the possibility of sky-high interest rates in the South Dakota constitution. The measure says no law capping interest is valid unless the borrower can agree to a different rate.
Steve Hildebrand, a South Dakota resident leading the push for the 36 percent proposal, has criticized Select Management Resources. The 18 percent amendment was put forward after the 36 percent measure.
Their tactics are going to be dirty and gruesome and the people of South Dakota should pay close attention to what theyre doing, said Hildebrand, whose South Dakotans for Responsible Lending group raised about $24,000 in cash contributions during the reporting period.
Hildebrand has said Rod Aycox, who runs Select Management Resources, made a surprise visit to his Sioux Falls coffeehouse in June to try to persuade him not to pursue the 36 percent measure. Hildebrand also said Aycox paid people to try to sabotage his restaurant.
Aycox didnt immediately return a telephone message from The Associated Press on Tuesday requesting comment.
Select Management Resources also donated $455,000 in 2015 to a political organization called Give Us Credit South Dakota that is focused on the 36 percent cap measure, according to state campaign finance documents. Give Us Credit South Dakota Chairman Bradley Thuringer didnt immediately return a message Tuesday from The AP.
The state Supreme Court could hear arguments this month on Select Management Resources legal fight. A company employee has argued that Jackleys description doesnt tell voters that short-term lenders would be forced out of business in the state if the ballot measure passes.
Lisa Furlong, chairwoman of South Dakotans for Fair Lending, has largely avoided speaking publicly about the amendment campaign. In a statement released in January, she called the measure far more stringent than Hildebrands 36-percent cap. Furlong also did not immediately respond to The Associated Press on Tuesday.
A former elections supervisor for South Dakota is among two men challenging the petitions of a group that wants to limit interest rates that payday lenders can charge borrowers.
Secretary of State Shantel Krebs certified the measure last month for the November ballot. If approved by voters, it would limit interest rates that payday lenders and title loan lenders charge at a maximum of 36 percent a year.
Backers of the measure, which included veteran Democratic political operative Steve Hildebrand, former Republican lawmaker Steve Hickey and Augustana University Professor Reynold Nesiba, submitted 19,936 signatures. A random sampling conducted by Krebs office determined that 86.4 percent of the signatures were valid, for a total of 17,222, more than enough to be placed on the ballot.
But a challenge filed by Aaron Lorenzen says that more than 7,000 signatures should be pitched for a variety of reasons. Almost 2,280 were signed by unregistered voters while hundreds of others should be voided because of incomplete addresses, illegible names or missing dates. Another 3,000 should be voided because of errors made by circulators, the challenge says.
Lorenzen, who was the Faulk County auditor, served as the state's director of elections under former Secretary of State Jason Gant. He resigned in 2012. He did not return a message Thursday.
In his affidavit, he said that he was "retained by opponents of the initiative to enact a 36 percent cap on short-term lending in South Dakota." He said he compared the names submitted by the backers of the initiated measure with the South Dakota Voter Registration file.
A separate challenge filed by Craig Olson alleges that neither Hickey nor Nesiba live at addresses they listed as circulators of petitions. Hickey left the country last summer to study in Scotland during the petition drive.