A 38-year-old man who operated as a loan shark in the Coventry area has been sentenced to 31 months in prison and handed a Criminal Behaviour Order in a first for the national Illegal Money Lending Team.
James Ringrose lent thousands of pounds to people, including workmates, charging ‘exorbitant’ interest rates and putting pressure on them to make them pay, Warwick Crown Court heard. He left borrowers feeling distraught and even suicidal as they struggled to pay him back.
Ringrose admitted two charges of illegal money lending and money laundering following an investigation by the England Illegal Money Lending Team (IMLT) and appeared before the court to be sentenced on Friday. (October 18)
As well as the jail term, his Criminal Behaviour Order means he must not enter the Stoke Aldermoor area of Coventry and not provide or collect unauthorised loans, directly or indirectly for the next five years. If he breaches the order he could face a further jail term.
The case was prosecuted by the IMLT in partnership with Coventry Trading Standards and West Midlands Police.
Mr Jonathan Barker, prosecuting on behalf of the IMLT, told the court Ringrose was operating as a loan shark between 2016 and July 2024 and used some of the proceeds to fund a house extension and cosmetic procedures in Turkey.
Ringrose was not authorised by the Financial Conduct Authority to lend money, which meant he could charge whatever he wanted and did not have to abide by the rules that protect borrowers.
Mr Barker said one of Ringrose’s borrowers was a workmate who needed some cash but could not get a loan through a mainstream lender. He borrowed £40 and repaid £60. A few weeks later borrowed a further £100 and told to repay £140. The borrowing continued and by 2019 he was repaying Ringrose £400 a month.
Mr Barker said the borrower would go to a cashpoint and meet Ringrose, who had a clipboard and crossed his name off when he handed over cash. He said Ringrose also asked this borrower to withdraw using debit cards belonging to other people.
Mr Barker said the borrowing ‘spiralled out of control’. He was never given any paperwork and never knew exactly how much he owed.
Another colleague who needed money to repair a vehicle, borrowed £200 and was told she would have to repay £280 by the end of the month. She later took another loan on the same terms and when she struggled to repay, they came to an agreement where she was repaying £80 a month. Mr Barker said she was so scared of repercussions she continued to make payments for three years, significantly more than the original sum.
After an initial investigation by the IMLT, Ringrose was arrested at an address in Barons Croft, Nuneaton.
Analysis of his accounts showed that since November 2016 there were 317 third party credits totalling more than £80,000, 29 cash credits of over £17,000, 63 third party debits totalling just over £4,500 and 626 cash withdrawals worth over £90,000. There were at least 20 names associated with the transactions.
He was bailed but the court heard he continued to provide and collect on unauthorised loans to around 10 people, for more than £15,000.
In July 2024, he was arrested again following a warrant at an address in The Barley Lea, Coventry. During a search of property IMLT officers recovered loan records hidden under the carpet of the bottom stair in a folder.
New analysis of his bank accounts showed that since May 2023, there were 39 third party credits of just under £3,500, 94 third party debits of over £5,700 and 22 cash withdrawals worth just over £1,000.
Mr Barker said this showed part of the picture as the defendant would have conducted loan activity in cash.
The court heard another borrower borrowed £1,000 in various instalments and was charged double interest on anything over £100, which led her into a cycle of debt.
Mr Barker said: “She estimates that over the years she has borrowed a total of £5,000 and has already paid over £50,000 back, but the defendant had stated she still owes him over £60,000. She states for years she endured constant harassment from the defendant. This includes him persistently contacting her via phone, turning up outside her work address, forcing her to provide bank statements and wage slips to show what funds she has, entering her home without her permission following her and taking her to cash machines to withdraw funds.”
He said on one occasion Ringrose followed her around Coventry, shouted at her in the street and threatened her partner in order to get her to pay.
He said another workmate borrowed £3,000, adding: “He states that the defendant never kept his illegal money lending business a secret and was actually quite boastful about it. Ringrose told him that he would operate like a ‘payday loan lender’ and after collecting payments from people, they would have to borrow again from him immediately. He boasted that he had a constant stream of income.”
Mr Barker added: “The prosecution case is that the loan business was lucrative. The defendant would brag to others about how lucrative it was. It helped him fund an extension to his property and pay for cosmetic treatments in Turkey.”
Mr Barker also said when Ringrose found out that the IMLT had begun an investigation he tried to persuade borrowers not to speak to officers, offering money as an incentive.
Mr Gerard Cullen, defending, told the court there was a lack of sophistication in the offending and Ringrose did not realise he was acting illegally at first.
The judge, Mr Recorder Tom Restall, said despite coming to the attention of the authorities, Ringrose continued to lend money, charging ‘exorbitant’ levels of interest.
He said borrowers’ mental health suffered badly and one reported feeling suicidal.
For the first count of illegal money lending, Ringrose was sentenced to 16 months in jail to run concurrently with a three-month sentence for money laundering.
For the second offence of illegal lending, he was handed a 12-month sentence together with one month for money laundering, to run concurrently, but consecutive to the first set of offences.
He was also handed three months’ custody for breach of a suspended sentence for an earlier unrelated offence, bringing his total sentence to 31 months.
Ringrose was also made subject to a 10-year restraining order in relation to one borrower and handed a Criminal Behaviour order for five years, which means he must not enter the Stoke Aldermoor area of Coventry and not provide or collect unauthorised loans, directly or indirectly. If he breaches either order he could face a further jail term. A POCA timetable was set.
Dave Benbow, acting head of the IMLT, a national organisation hosted by Birmingham City Council, which investigates and prosecutes loan sharks, said: “This case is the first time we have used a Criminal Behaviour Order, which means that not only has Ringrose been punished for his illegal money lending activities, he will also be subject to strict rules that stop him acting as an illegal lender in the future.
“Even when illegal lenders are convicted and sentenced, that is not the end of it. We will do whatever we can to ensure they are not free to continue to blight communities in any way.
“Once again, we are grateful to all the witnesses who came forward in this case. We realise it’s not easy, but this shows that we can and will continue to take the strongest possible action against illegal lenders to make our communities safer.”
Councillor Abdul Salam Khan, chair of Coventry’s Police and Crime Board, added: “It is really disturbing how the culprits operate and that’s why I’m pleased about the action that has been taken to deal with this case. It shows the importance and effectiveness of partnership working between the Council’s trading standards officers and the Illegal Money Lending Team. I’d encourage anyone who has been affected by illegal money lending to get in touch on the Stop Loan Sharks helpline or via their online support.”
Anyone who has been affected by illegal money lending should call the Stop Loan Sharks 24/7 Helpline on 0300 555 2222 or access support online at www.stoploansharks.co.uk. Live Chat is available on the website from 9am to 5pm, Monday to Friday.
