Lewisham residents will be targeted in a new scheme to raise awareness of the dangers of using loan sharks.

The nationwide scheme launched by Stop Loan Sharks, a campaign from the England Illegal Money Lending Team (IMLT), will encourage people to start saving and prevent them from falling victim to unscrupulous lenders.

This comes after reports a financial regulator is placing a price-cap on the interest rates rent-to-own shops, which sell appliances and furniture for small weekly payments, can set.

The first 50 people to join Lewisham Plus Bromley Credit Union who save regularly for three months will get a savings boost of £25 from money which was confiscated from convicted loan sharks.

An IMLT spokeswoman said: “It is a scheme we are running across the country more in deprived areas.

“It’s not to say that it’s an issue in Lewisham, but there are high levels of deprivation and a risk of turning to loan sharks.”

Ravi Ravindran, CEO of Lewisham Plus Bromley Credit Union, said the scheme was a great opportunity for Lewisham residents.

He said: “We consider it our duty to provide people with affordable loans, so that they do not fall victim to unscrupulous lenders, who charge exorbitant interest rates.

“When borrowing from unauthorised money lenders, borrowers will fall further into debt and their financial situation will be worse.”

Typically, loan sharks do not give paperwork and loans will increase even if the borrower is making regular payments.

Loan sharks may appear friendly at first, but can resort to violence, threats and intimidation if payments are not met, according to the IMLT.

IMLT has secured more than 382 prosecutions for illegal money lending and related activity nationwide.

It has written off £73.7 million worth of illegal debt and helped over 28,000 people.

If you or someone you know have been the victim of a loan shark, seek help by contacting IMLT on 0300 555 2222.