PREDATORY loan sharks have reportedly been including demands for sex in contracts – and threatening women who refuse to comply.
Research has found that some illegal money lenders demand sexual favours as an additional form of repayment, the Telegraph reported.
Loan sharks have reportedly been including demands for sex in contracts (stock image)Credit: Getty
The think tank Centre for Social Justice found that criminals used coercive and violent methods which included sex-for-loans.
According to the research, ten per cent of borrowers have provided sex for loans or signed agreements to provide sexual favours if they defaulted.
These findings were uncovered by using a database of 1,200 victims and a survey of 4,000 people.
The investigation revealed one contract which said: “Interest on the loan capital will be rendered in kind, with Ms X agreeing to provide sexual gratification for Mr Y.
“Such services will be available upon request at every loan repayment.”
Anna, 38, a victim of loan sharks said: “I’m scared of what he can do. I had to sleep with him because I couldn’t afford the payments.
“I feel unclean…I knew it was wrong, but he took a photo of my daughter coming out of school and sent it to me saying ‘we now know what she looks like’.”
Repaying off the loan can take up to a decade with one woman borrowing £3,000 to pay off her brother’s loan and repaying £20,000 over three years.
More than a fifth of victims found themselves repaying an illegal lender for more than five years with seven per cent repaying a lender for more than a decade.
Some neighbourhood loan sharks even went as far as to identify victims via school by seeing “which of their children’s friends were hungry or didn’t have the best shoes”.
According to research by the CSJ around 1.08 million people in the UK have admitted they borrowed money from “someone who charged interest” not operating with a bank.
The total is 700,000 more than thought and even includes middle-income families.
Nearly half of those who borrowed from illegal money lenders used the cash for everyday expenses and household bills.
Researchers fear that the number of people using loan sharks could increase when the cost of living crisis hits.