Exeter carer who acted as a loan shark is given community order

A 47-year-old woman has been given a 12-month community order with 300 hours of unpaid work after admitting acting as a loan shark in the Exeter area.

Renita Mendoza lent over £100,000 to at least 25 people over a period of three years, charging interest, even though she was not authorised to do so by the Financial Conduct Authority.

She appeared before Exeter Magistrates’ Court yesterday (Wednesday 20 November) to be sentenced.

The case was prosecuted by the England Illegal Money Lending Team (IMLT) in partnership with Heart of the South West Trading Standards Service and Devon and Cornwall Police.

Mr Simon Mortimer, prosecuting on behalf of the IMLT, said a report was made about Mendoza, a professional carer, to the IMLT’s helpline in January this year.

She was arrested in April at her employer’s address in Pennsylvania Road, where she was living, and items were seized that indicated a money lending business.

Mr Mortimer said she confirmed she had been lending money, predominantly to friends at work, and charging an interest rate of around eight per cent a month.

The court heard loan records showed 67 separate entries dating from April 2021 to April 2024. At least 25 different names featured with around 110 loans made. The combined value of the loans was just over £108,000 and Mendoza expected to collect at least £123,000 in repayments if all of the repayments had been made and she had not been arrested.

The interest rate generally applied was eight per cent, although some entries showed a lower rate. The interest was applied as a monthly rate on the outstanding amount until the capital was repaid.

In her defence, the court was told that Mendoza did not realise what she was doing was wrong and she was very highly thought of within the community and by her employers. She lent money within a limited social circle and a custodial sentence would have a detrimental effect on those she cared for.

As well as the community order, she was told she must pay a £95 surcharge and a £3,500 contribution towards costs.

Speaking after the hearing, acting head of the IMLT, Dave Benbow, said: “Illegal lenders may appear to be a friend offering a favour, but they often target vulnerable people and the fact that they are unauthorised, leaves borrowers with no protection when it comes to repaying the loan.

“They may lend to people who cannot afford to pay them back and charge whatever interest they like. This leaves borrowers at risk of falling further into debt and can impact their other finances, leaving them unable to pay rent or other priority bills.

“We are determined to make sure illegal lenders have no place in our communities and we want to make people aware that there are other, safer ways to borrow, such as credit unions and CDFIs.”