What is an Illegal Money Lender?
An illegal money lender or Loan Shark as they are commonly referred to, is someone who lends money as a course of trade or business without having the authorisation from the Financial Conduct Authority (FCA) to do so. They come in all shapes, sizes, ages, ethnic groups, social backgrounds, and genders, and can include a friend of a friend, a neighbour, work colleague or someone who is part of an organised crime group.
There is generally no contract to sign, no proof of income required from the borrower and no receipts given for payment. Loan Sharks will lend to anyone, including children and take cash, goods or ‘in kind’ payments to repay the loan. New borrowers are found via ‘word of mouth’, a Loan Shark rarely advertises their business
A Loan Shark will often present as friendly at the point of borrowing and convince the borrower they are doing them a favour. The money being loaned may start out as a small amount, but soon rises. Unfortunately, when the borrower misses a payment, increased penalty charges, threats, intimidation, blackmail, and violence generally occur.
What to do if you think someone has borrowed money from a loan shark
If you have, or someone you know informs you that they have borrowed money from a friend, ask yourself or them the following questions:
- Is the friend lending to anyone else?
- Was it a cash loan?
- How are payments made?
- Do you have any paperwork for the loan?
- Does the lender take you to the cash point to withdraw payment?
- Does the friend come round to the house to collect payment?
- Is the friend charging interest?
- Has the friend threatened you if you have been unable to pay?
- Has the friend taken your bank card, benefit card, passport, watch or other valuables from you?
If the answer is yes to any of these, it is likely that the money is being borrowed from an illegal money lender.
Where to get help
Confidential help and support can be sought from the England Illegal Money Lending Team via:
Telephoning 0300 555 2222 (available 24/7)
Emailing reportloanshark@stoploansharks.gov.uk
Live chat at www.stoploansharks.co.uk (9am-5pm, Mon-Fri).
