What is a loan shark?
If you suspect someone is lending money illegally, it’s important to seek help. Loan sharks are individuals or businesses that lend money without being authorised by the Financial Conduct Authority (FCA). They often:
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Charge extremely high interest rates that make repayment unmanageable.
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Use threats, violence or intimidation to recover money.
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Refuse to provide paperwork or clear terms of repayment.
How to protect yourself from loan sharks
To avoid falling victim to illegal money lending, you should:
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Check the lender’s credentials
Always borrow from lenders who are authorised by the Financial Conduct Authority (FCA). You can check the FCA’s register for authorised lenders here (register.fca.org.uk).
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Avoid borrowing money from informal sources
Be cautious of anyone offering cash loans without paperwork or clear terms.
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Speak up early
If you’re struggling financially, seek advice from trusted organisations like Citizens Advice or StepChange Debt Charity, which can guide you through legitimate options.
Signs of a loan shark
To avoid falling victim to illegal money lending, you should:
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You were offered a loan without any formal agreement or paperwork.
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The lender is charging high interest rates or adding extra fees without explanation.
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You’re being pressured to borrow more to pay off existing loans.
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The lender is threatening you or someone you know.
What to do if you’re being targeted
If you think you’re being targeted by a loan shark, it’s important to act quickly. You can:
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Contact the England Illegal Money Lending Team (Stop Loan Sharks): they provide confidential advice and support to anyone affected by illegal money lending. You can report a loan shark anonymously.
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Report intimidation or threats to the police: if you feel unsafe, contact your local police force.
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Seek financial advice: organisations like Citizens Advice or StepChange Debt Charity can help you explore safer borrowing options or debt management solutions.
How to report a loan shark
If you or someone you know has been approached by a loan shark:
– Call the 24/7 Stop Loan Sharks Helpline: 0300 555 2222.
– Text a tip: send the words ‘LOAN SHARK’ and your message to 07860 022116.
– Use the online report form
Reporting is anonymous, and the team will not share your details with the loan shark or anyone else.
Help and support
You don’t have to face this alone. There are trusted organisations ready to help:
– Stop Loan Sharks: for confidential advice and to report loan sharks
– Citizens Advice: for support with financial struggles and accessing legitimate borrowing options
– StepChange Debt Charity: for debt advice and management plans