STOCKTON residents are being warned against turning to loan sharks over the festive period as part of a campaign to raise awareness of the pitfalls.

Stockton Borough Council has signed up to the national Stop Loan Sharks Project, which warns the public of the damage that unscrupulous illegal money lenders cause.

The Stop Loan Sharks Project has helped secure 321 prosecutions leading to more than 205 years’ worth of custodial sentences. In addition officers at the project have written off almost £62m worth of illegal debt and helped almost 25,000 victims.

Stockton Borough Council’s cabinet member for housing and community, Councillor Steve Nelson, has added his voice to the campaign.

He said: “The cost of Christmas can place a strain on people’s finances but we want residents to be aware of the bigger damage that turning to loan sharks causes.

“The terms of any loans are often unclear, leaving borrowers in the dark about how much money they actually have to pay. Extra interest payments are added at random, resulting in the amount owed spiralling out of control.

“No matter how desperate people become, illegal money lenders are never the answer.”

The Tees Credit Union can offer residents of the Stockton district a safe alternative. In October the credit union secured £150,000 fromThe Northern Rock Foundation as part of ambitious new plans to quadruple in size in order to take on high-interest payday lenders. The Tees Credit Union in Stockton currently has 2,053 members but hopes to eventually reach nearly 8,000 members.

Visit teescreditunion.co.uk for more information.

Victims of loan sharks can contact the Stop Loan Sharks Project on 0300-555-2222 in confidence.