Fears energy payments could be taken by paramilitary loan sharks in Northern Ireland
There are fears paramilitary loan sharks could demand £600 energy payments from vulnerable households to pay off debts.
The funding from the government began to roll in last week to help struggling households with soaring energy costs.
Rev. Brian Anderson has worked with people who find themselves in debt to paramilitary organisations.
He told UTV: “The danger is they will come looking for you to get their money back because they know you have got £600.
“The intentionality of the money was to help with electric and energy costs but my fear is that people may loose it because somebody may demand it off them.
“That could lead people into criminality if they don’t pay up.”
These loan sharks operate in the shadows, often in to communities they live in.
They can provide money at short notice.
Siobhan Harding, from Women’s Support Network, says low income households aren’t able to absorbs shocks like a washing machine or oven breaking down.
“Those are essentials of life and there is often an urgent or desperate need for money.”
“One woman told us if you need to borrow £1k and you ask for it in the morning you will have it in the evening and there is no paperwork or checks.”
They know their communities well and they know the circumstances, they very often know who is on benefits, they know when people go to work and come home, they know who is struggling.“
The interest rates can be extortionate and can lead people to spiral into a cycle of debt.
UTV has been told of people paying back up to £40 for every £100 they borrow.
However, when a payment is missed to someone is unable to repay the interest rates can explode.
One example was how a £200 debt shot up for over £800 in the space of a month.
Paramilitaries do however offer an alternative way of paying debt, and that often leads to criminality.
Rev Anderson says “That could be holding stuff for paramilitaries or delivering stuff for them.
“They then run the risk of criminality and criminal record just for wanting to heat their house.”
Siobhan Harding says “If they find they can’t repay then the other options can be dangerous.
“There have been threats of violence.”
“They can also be asked to repay with things like prescription medication or access to their benefit books.”
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