Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to tackle (a) payday loan scams and (b) other fraud by fake loan companies.

The Government takes fraud very seriously. We continue to work closely with industry to close down the vulnerabilities that fraudsters exploit and ensure members of the public have the information they need to spot a scam and stand up to fraudsters. These actions include the Joint Fraud Taskforce which is helping to build a collaborative law enforcement, government and industry response to tackling fraud.

Illegal lenders, or ‘loan sharks’, can also prey on victims in various forms including by posing as fake loan companies. To tackle this crime, the Government funds the Illegal Money Lending Teams (IMLTs), via a levy on the financial services industry. The IMLTs have powers to deal with wider criminality associated with loan sharks, such as fraud, and can seize the assets of convicted loan sharks to fund support for victims and raise awareness of the dangers of illegal lending in affected communities.

The Government and IMLTs are alert to the particular challenges faced by vulnerable consumers as a result of COVID-19 and continue to work together to ensure that this dangerous and illegal activity is stopped.