Motherwell loan shark convicted and under financial investigation

Nov 3 2011

A MOTHERWELL man has been convicted of illegal money lending following an investigation by the Scottish Illegal Money Lending Unit.

Thomas Reid pleaded guilty to the charge at Hamilton Sheriff Court last week, admitting lending to vulnerable people, and harassing those who could not make payments.

The 65-year-old came to the attention of the Scotland Illegal Money Lending Team in April 2010.

During their enquiries they identified 24 victims who were being charged variable amounts of interest on the illegal loans ranging from 1619 per cent and 2488 per cent APR.

Furthermore, Reid’s own records showed he had made £74,000 through his illegal business and had £105,000 loaned out at the time action was taken.

The court heard how Reid was previously licensed to lend money as a business, but his paperwork to had been lapsed in 2005, but had continued to lend illegitimately since then.

Fiona Richardson, Project Manager at the Scottish Illegal Money Lending Unit, said: “Illegal money lending will not be tolerated.

“These criminals cause a great deal of misery to their victims, often charging exorbitant rates of interest and trapping their borrowers into a never-ending spiral of debt.

“Many will resort to extreme methods of intimidation, threats and violence to enforce the illegal loans.

“We would urge anyone who is the victim of an illegal lender or knows of someone who may be, to contact us in absolute confidence on 0300 555 2222.”

Reid was fined £750 and ordered to make another appearance at Hamilton Sheriff Court on November 24, with a view to confiscating his assets.