Illegal money lending

Illegal money lending


Have you been affected by, or do you want to know more about, illegal money lending?

Illegal money lending is when someone illegally loans you money. These unlicensed money lenders are often known as loan sharks.

Loan sharks charge high amounts of interest even on short-term loans. In one real-life example, a person borrowed £500 but ended up repaying £88,000 trying to clear the debt.

You might’ve fallen victim to a loan shark if you needed to borrow money but have a bad credit rating or got turned down by your bank.

Illegal money lenders target people who are in desperate financial situations and are often friendly at first, but then resort to threats, intimidation or violence to get their money back.

You end up paying more back in interest than you would through legal borrowing, and you’re often pressured into getting further loans to cover your debt.


How you might be feeling

As a victim of an illegal money lender, you might feel:

  • embarrassed about debt problems and reluctant to seek help
  • worried about involving agencies such as police or social services
  • fearful due to threats or intimidating behaviour
  • trapped with escalating debt that you can’t pay and with no way out

You don’t need to suffer in silence. Help is available for victims of loan sharks, whether or not you’ve reported it to the police.

Please remember, you’re not in trouble if you’ve borrowed from a loan shark. It’s the lender that’s committing a criminal offence, not you.

Circle

Get the help you need

If you’d like more information or support, contact us now.

As well as receiving help from us, you can also get support from other organisations and charities. See below or search our directory.

England Illegal Money Lending Team – The England IMLT helps victims of loan sharks and offers advice and support, including emotional support. Call them on 0300 555 2222 or email reportaloanshark@stoploansharks.gov.uk.

Arrow

Report a loan shark

Report anonymously or with your details to the England Illegal Money Lending Team (IMLT). The England IMLT is a national law enforcement agency funded by central government to combat loan sharks and provide support for borrowers. Call 0300 555 2222, use the live chat or complete an online form, send an email to reportaloanshark@stoploansharks.gov.uk or text 07860 022116.

Report anonymously to Crimestoppers on 0800 555 111. Crimestoppers is a charity that’s entirely independent of police.

Report to the police by calling 101 or via the Greater Manchester Police website.

In an emergency, call 999.

How to spot a loan shark

Here are six ways to spot a loan shark:

  1. You’re not given paperwork to confirm the arrangements of the loan

  2. They refuse to tell you how much you owe, how long you’ll be repaying the loan or the interest on the loan

  3. They increase the charges or debt

  4. They take personal items as collateral such as credit cards and passports

  5. They resort to violence or intimidation if you cannot repay the loan

  6. In extreme cases, they get you to repay the loan through illegal activities such as prostitution, drug dealing or acting as a store for drugs or weapons

Who are loan sharks?

A loan shark may be someone that you’re familiar with, perhaps even think of as a friend or, in rare cases, a family member.

Some illegal money lenders will start with very small amounts such as £10–£30 and draw borrowers in before increasing amounts with larger payback arrangements.

Victims often get caught in an escalating situation where they cannot meet repayment terms and with ever-increasing debt.

Check if a lender is registered

Search the Financial Services Register for companies and individuals authorised by the Financial Conduct Authority (FCA). Loan sharks aren’t registered so won’t be on the list.

You can also contact the Financial Conduct Authority by emailing consumer.queries@fca.org.uk or calling 0800 111 6768.

Cross