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| Personal debt goes up by 23% in a year in Wales | Personal debt goes up by 23% in a year in Wales |
| (2 months later) | |
| There has been a rise of 23% in personal debt in the last year across Wales, according to a charity. | There has been a rise of 23% in personal debt in the last year across Wales, according to a charity. |
| The figures from StepChange show how many people are struggling to meet bills after the economic downturn. | The figures from StepChange show how many people are struggling to meet bills after the economic downturn. |
| It comes alongside fears new regulations may force some borrowers into the hands of loan sharks. | It comes alongside fears new regulations may force some borrowers into the hands of loan sharks. |
| The Wales Illegal Money Lending Unit is currently investigating one suspected loan shark for loaning money at six million per cent interest. | The Wales Illegal Money Lending Unit is currently investigating one suspected loan shark for loaning money at six million per cent interest. |
| Peter Tutton, head of policy at debt charity StepChange, told BBC Wales Week In Week Out: "Households (are) struggling with stagnant incomes and rising costs. | Peter Tutton, head of policy at debt charity StepChange, told BBC Wales Week In Week Out: "Households (are) struggling with stagnant incomes and rising costs. |
| "Even though the economy is starting to pick up a bit we're still seeing more and more people coming for debt advice. The number of people we're seeing in Wales has gone up more than 20% over the last year." | "Even though the economy is starting to pick up a bit we're still seeing more and more people coming for debt advice. The number of people we're seeing in Wales has gone up more than 20% over the last year." |
| Last month a new cap on credit was introduced by the Financial Conduct Authority (FCA) to limit the amount of interest the payday loan companies could charge borrowers. | Last month a new cap on credit was introduced by the Financial Conduct Authority (FCA) to limit the amount of interest the payday loan companies could charge borrowers. |
| This has led to fears people will increasingly turn to loan sharks to make ends meet. | This has led to fears people will increasingly turn to loan sharks to make ends meet. |
| Chris Pond, who is vice-chairman of the newly-established Financial Inclusion Commission, said the cap had led to a reduction in affordable credit across the UK. | Chris Pond, who is vice-chairman of the newly-established Financial Inclusion Commission, said the cap had led to a reduction in affordable credit across the UK. |
| He said: "While the supply of that lending has disappeared the demand doesn't. The demand keeps on growing. And it's in that respect that the illegal loan sharks are getting into a feeding frenzy." | He said: "While the supply of that lending has disappeared the demand doesn't. The demand keeps on growing. And it's in that respect that the illegal loan sharks are getting into a feeding frenzy." |
| Loan sharks are hard to catch and even harder to prosecute, with less than 10% of those reported ending up in court. | Loan sharks are hard to catch and even harder to prosecute, with less than 10% of those reported ending up in court. |
| Lessons warning against loan sharks for children in Wales are to be piloted from March. | Lessons warning against loan sharks for children in Wales are to be piloted from March. |
| The Illegal Money Lending Team (ILMT) in Wales is offering schools ready-made lessons designed to warn pupils about the dangers, with the hope they will take what they have learnt home with them and feed it back to their parents. | The Illegal Money Lending Team (ILMT) in Wales is offering schools ready-made lessons designed to warn pupils about the dangers, with the hope they will take what they have learnt home with them and feed it back to their parents. |
| The educational packs, including videos and activities, have been funded by confiscated money from convicted loan sharks. | The educational packs, including videos and activities, have been funded by confiscated money from convicted loan sharks. |
| Similar lessons started being offered to schools in England last year. | Similar lessons started being offered to schools in England last year. |
| Wales Illegal Money Lending Unit (WIMLU) investigations manager Stephen Grey estimates many thousands of people across the country are victims of illegal money lending. | Wales Illegal Money Lending Unit (WIMLU) investigations manager Stephen Grey estimates many thousands of people across the country are victims of illegal money lending. |
| "These people have essentially been groomed," said Mr Grey. "They are encouraged to borrow a bit of money for a pair of trainers for the kids, or a new washing machine, and once they are in the screw is turned. | "These people have essentially been groomed," said Mr Grey. "They are encouraged to borrow a bit of money for a pair of trainers for the kids, or a new washing machine, and once they are in the screw is turned. |
| "There is a degree of trust there to start with, but once they get their hooks into you they are looking for a cash cow." | "There is a degree of trust there to start with, but once they get their hooks into you they are looking for a cash cow." |
| Week In Week Out, Wales in the Red: February 10, BBC One Wales 22:35 GMT | Week In Week Out, Wales in the Red: February 10, BBC One Wales 22:35 GMT |