A WARNING to stay away from loan sharks has been issued to Penhill people.

It comes as part of a new scheme to encourage people in the area to start saving.

A joint initiative between the England Illegal Money Lending Team and Wiltshire Savings and Loans will see proceeds of crime money, confiscated from convicted loan sharks, used to sponsor new credit union accounts.

As part of the scheme, the first 50 people to join Wiltshire Savings and Loans in Penhill before October 31, and make three payments into their accounts, will receive a boost of £25.

Tony Quigley, the head of service for the National Illegal Money Lending Team, said: “Illegal money lenders can have a horrific impact on our communities, and should never be used under any circumstances.

“We’d always urge residents to look at borrowing from safe and legal alternatives, such as their local credit union.

“Loan sharks may appear friendly at first and act as though they’re offering a community service, but don’t be fooled by this behaviour as it soon changes once monies are owed.”

It is estimated that 310,000 households nationally are borrowing from illegal money lenders, with excessively high interest rates used to trap borrowers into a spiral of debt.

Loan sharks then commonly resort to bullying tactics, including intimidation, threats and violence, to enforce repayment.

Nationally, Illegal Money Lending Teams have secured more than 379 prosecutions for illegal money lending and related activities, leading to nearly 325 years of custodial sentences.

They have also written off £72.5 million worth of illegal debt and helped over 27,000 people.

Clive Henly, chairman of Wiltshire Savings and Loans, said: “Like all credit unions, Wiltshire Savings and Loans is committed to helping people manage their money.

“When people save a little regularly, we can help them when they face an emergency or if they want to make a special purchase.

“Our interest rates are always kept low, and there never any hidden charges.

"Our credit union is owned and run by its members, ensuring that we always serve the local community.”