Illegal Money Lending in SligoPresentation at RAPID National Event February 8th 2012

Illegal Money-Lending in Sligo

•The Problem•The Response - CAILM - who, how, where, what

•Three Pillars of Action Education and Prevention Alternatives to IML Enforcement

•Service Integration and Collaboration - the improvements

•Recommendations for Future Action

Defining the Problem• Presence of ILM “agents” in Sligo Town• Provide loans from €20 up to thousands – a loan culture• Charge interest of over 200% (borrow €10; owe €30) – a

cycle• Extort money with menaces + huge debts + worries• Crime not to provide lending agreement, business premises

and causing distress/alarm in repayment of debt • Agents hold Social Welfare Services cards in lieu of debt• Associated with assaults, intimidation, theft and damage to

property, other criminal activity. • Prey on vulnerable, young and those on low income• Involve extended family • 2010-11 New victims who have money troubles

Communities Against Illegal Money-Lending (CAILM)

Membership includes:

• RAPID AIT• Gardai

• LA Elected members• Sligo Borough Council

Housing Section• Focus Ireland

• MABS• Credit Union• Community Services

providers• Sligo Social Services• Community reps

Three Pillars of CAILM

Education & Preventative•Schools Poster competition •Press coverage •Letters to politicians•Presentation to JPC •School Book Scheme campaign•“Lennies” Leaflet• Promotion of MABS and budgeting /debt counselling at early stage

Alternatives to IML

•Community Bank in Cranmore

•Promotion of Credit Union and savings culture through campaigns

•Promotion of MABS and budgeting /debt counselling at early stage

Enforcement

•Information flow to support Gardai• New Garda unit to investigate reports

Service Integration

• Partnership is Key – Shared Resources/Knowledge/Expertise.

• Community Led and Community Focused.

• Financial Inclusion – Community Bank.• Alternatives and Savings Culture.• Influence of CAILM on MABS work –

Reporting, Sharing, Collaboration, Grounding, Social Policy.

Where to Now?

• Community Education – Targeted and Mainstream (School System)

• Conviction – Gathering Evidence? • Community Banks- Savings Culture.• Leadership – RAPID• Political Intervention for legislative change• No Quick Fix – Ongoing Project.• UK model of good practice

Contact Details of CAILM

Pamela AndisonRAPID Co-ordinator Sligo County Council

Tel. 071 9114468

pandison@sligococo.ie