Illegal lenders should be jailed ‘for five years’, say MPs 

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Illegal lenders who take advantage of cash-strapped customers should be jailed ‘for five years’, say MPs

By Daily Mail City & Finance Reporter

Published: | Updated:

The All Party Parliamentary Group on Alternative Lending fears the coronavirus crisis will prompt a spike in illegal lending

Criminals who take advantage of cash-strapped customers by offering illegal loans should receive longer jail terms and harsher penalties, a group of MPs has demanded.

The All Party Parliamentary Group on Alternative Lending has warned the financial difficulties which the coronavirus crisis has caused for many households will prompt a spike in illegal lending.

The group held an inquiry into consumer borrowing post-coronavirus and chairman, Julian Knight, has written to the Treasury urging it to take preventative and punitive measures.

He said: ‘Consumer demand for credit will rise post-Covid and legal supply will fall. The only winner will be illegal operators unless preventative steps are taken.’

Tony Quigley, head of the England Illegal Money Lending Team, told the MPs the maximum jail sentence for illegal lenders must be hiked from two years to five years.

And Knight added that consumers need to be wary of new online illegal lending schemes.

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