Illegal money lending and loan sharks
They often lend money to people who are struggling financially. If the borrower cannot repay the money, the lender may charge very high interest rates, increasing the amount that must be repaid.
A lender may seem friendly at first. If the borrower cannot repay the debt, the lender may become aggressive or threaten the borrower.
Legal lenders must be authorised by the Financial Conduct Authority. You can check whether a lender is authorised by searching the Financial Conduct Authority register
Signs that someone may be a loan shark
- No paperwork: loan sharks may avoid paperwork because it can be traced
- Cash repayment: loan sharks may lend or ask to be repaid in cash to avoid being traced
- Refusal to provide information: loan sharks may avoid explaining repayment terms or interest rates
- Threats of violence: a legitimate lender should never use intimidation to get money back
Report a loan shark
If you or someone you know is being targeted by an illegal lender, you can report them anonymously to Stop Loan Sharks
If anyone is using aggression or threats to get you or someone you know to repay a loan, call the police on 101 for non-emergencies. Call 999 if you are in immediate danger.