Loan Shark Gets Community Service

A loan shark who charged 1000% interest today received a sentence of only 150 hours of Community Service from a Birmingham Court.

Alan McNally operated the unlicensed money lending operation in the Northfield area of Birmingham after poaching his employer's clients whilst working at a finance company. Abusing his position of trust, he left the company and approached clients to offer illegal loans with interest rates of over 1000% APR. McNally paid personal visits to his victims' homes when they were unable to meet payments.

Whilst the service provided by investigators from the DTI-funded Loan Shark Team was excellent, swooping on McNally's home within weeks of receiving a tip-off, the sentence is a major disappointment.

Alan McNally from Yardley Wood, Birmingham had about 75 clients which he lent money using £20,000 raised from remortgaging his home. The typical loan amount was for £100.

Damon Gibbons, Chair of Debt on our Doorstep commented that:

"This is clearly inadequate and sends the wrong message. The Government needs to look again at the powers available to the courts when sentencing in cases like this. We also need to ensure that finance companies make proper checks of their employees and put in safeguards against this type of rogue behaviour. Nothing in the Minister's statement made about this case indicates that this is being considered".