Warning Against Rogue Moneylenders for Unemployed

19 May 2012

As people from across the county are struggling to claw back lost earnings following the collapse of Northumberland Foods, DAWN is strongly urge those affected not to turn to illegal moneylenders for financial help. 

Former employees of the factory, who worked unpaid for several weeks, were told just two days after the company went into administration that they would not receive redundancy packages.

Instead they were expected to claim back outstanding earnings and holiday pay from an emergency Government fund, which can take three to six weeks to process applications - leaving many families fighting to keep their finances afloat.

The employees' fight for what they're owed comes as the UK's unemployment figures were released. Although the number of people out of work in the North East has fallen by 1,000 it still stands at 118,000 - roughly the same as the combined populations of Morpeth, Ashington, Blyth and Cramlington.

What's more, figures are expected to increase dramatically as the Government's upcoming spending review will inevitably lead to job cuts.

With a large proportion of the Morpeth and Ashington workforce reliant on public sector jobs we are expecting the county to be hit hard by the spending cuts, which will have a further impact on businesses who work closely with these organisations.

At a time when many are worried about their jobs, they should avoid seeking help from unlicensed moneylenders, instead they should contact an independent advice service such as their local Citizens Advice Bureau.

By approaching rogue lenders borrowers are opening themselves up to extortionate rates of interest and, in worst case scenarios, intimidation and violence if repayments are missed.

There are many organisations across the region which can offer much-needed help and advice to people facing unemployment and potential financial hardship. These channels of support can help prevent people from feeling they have in no one else, but illegal moneylenders, to turn to.

Unresolved money problems do not just affect people's wallets as they can cause unnecessary strain on relationships, create further issues relating to housing and can even lead to a deterioration in a person's well-being and other health problems. So it is vital that these difficulties are not ignored as they will not go away without the right help.

Northumberland residents concerned about their finances or employment law can contact the DAWN Advice Team for free and independent advice on 01670 785 500.