Sunderland mother and son ran illegal lending operation with interest rates as high as 69%

A mother and son who operated an illegal money lending business have been spared prison.

Brenda Lamb and Graeme Lamb handed out loans of between £50 to £1,500 to customers, at varying rates of interest, between 2014 and 2019.

Newcastle Crown Court heard the enterprise was not a loan shark-type operation and there were no threats but it was unlicensed and therefore illegal.

The court heard Brenda Lamb had worked for a legitimate loans company and when she left that employment she continued doing the same thing with her son, with no licence.

Prosecutor Simon Mortimer said: "There was an illegal money lending enterprise being run by this mother and son. An anonymous caller reported Graeme Lamb was selling loans through a company."

The anonymous call was made to the confidential England Illegal Money Lending Team (IMLT)hotline. The IMLT then launched an investigation in partnership with Sunderland Trading Standards and Northumbria Police.

Investigators found evidence 361 loans were made to 78 people, ranging from £50 and £1,500.

The court heard the interest rates charged varied between 48% and 69.5%.

The interest paid to them in total was around £50,000.

Graeme Lamb, 51, of Seafields, Seaburn, and Brenda Lamb, 82, of Bromarsh Court, Sunderland, pleaded guilty to unlawfully engaging in money lending and possessing criminal property between 2014 and 2019 and were both sentenced to 12 months suspended for 18 months.

The son was also given 250 hours unpaid work.

Judge Nathan Adams said: "The lending of money is a highly licensed area for good reason, to protect the public. All of the people you loaned money to were at risk as a result of your unlicensed status.

"At best, it was a wilful blindness to the requirements that weren't being complied with. I accept it was not being operated with threats or coercion.

"It's not a loan shark-type of case. It was the fact you were unlicensed that is the criminality in this case."

Nick Lane, defending Graeme Lamb, said the illegal money lending operation did not involve any violence and the only wrongdoing was the fact they were not licensed.

He added: "What happened was Brenda Lamb had a legitimate job with small loans over short periods being sold in the local community.

"When she finished that role she and her son continued that business in much the same way. It had operated as a legitimate business. They were lending relatively small sums at interest rates and while they seem high it's not unusual for payday loan companies to have annual interest rates well up in the thousand percents. These are some way short of that.

"Mr Lamb says he did try to legitimise it and register the company. The cost to register was so high it prevented him from doing so.

"Much of the money was recycled back through the business. They were not living a flash and lavish lifestule while others struggled financially.

"He is of previous good character and is deeply ashamed and embarrassed to find himself before the court today. He has always had a strong work ethic. He has a background in specialist printing of high security documents."

Brenda Lamb did not attend the hearing due to health problems.

Speaking after the hearing, head of the IMLT Tony Quigley said: “Some illegal money lenders want to make borrowers believe they are offering a genuine service for the community, but the truth is that they prey on the vulnerable and are out to line their own pockets. All legitimate lenders have to have the correct authorisation and there are rules they must comply with that protect those who are borrowing.

“We work with our partners to make sure people are aware of the dangers of borrowing from illegal money lenders and to raise awareness about safer ways to borrow, such as credit unions.”

Sunderland City Council’s Cabinet Member for Vibrant City, Councillor John Price, added: “There is no place in our communities for unscrupulous lenders like this who take advantage of people who may be struggling with their finances.

“I would encourage anyone with information about illegal money lending to contact the national Illegal Money Lending Team or the City Council and report what they know so it can be investigated.

“Also, if people have concerns about their finances then please seek out help and advice to see what support is available. Borrowing money from an illegal lender may seem easy, convenient or even tempting, but it can make financial problems much, much worse.”