Watch out for loan sharks
Loan sharks are illegal money lenders who aren’t authorised by the Financial Conduct Authority (FCA). They often target people in difficult circumstances, charge very high interest rates, and sometimes threaten violence to get people to pay them back.
If you’re struggling financially, contact us for support on 0300 555 0500. Avoid borrowing from loan sharks even if you feel you have no other options, as they can make the situation much worse.
How to spot a loan shark
The following signs indicate that the person offering you a loan is illegally doing so.
- They offered you a cash loan.
- They didn’t give you any (or only minimal) paperwork. Most loan sharks will avoid giving you clear details about your loan.
- They added huge amounts of interest or APR to your loan.
- They’ve threatened or harassed you to get you to pay them back. They might also pressure you to take out another loan to pay off one with another.
- They’ve taken something from you, such as your bank card, benefit card, passport, or other valuables.
- They’ve added extra charges or increased your debt, even if you’re making regular repayments.
Reporting a loan shark
If you think you’ve borrowed money from a loan shark, or you think you know someone is lending money illegally, you can check if they’re on the Financial Services Register.
If they’re not, you can report them anonymously to the Illegal Money Lending Team at Stop Loan Sharks by:
- calling 0300 555 2222 (24-hour service);
- texting 0786 002 2116;
- emailing reportaloanshark@stoploansharks.gov.uk.
When you report someone to Stop Loan Sharks, they’ll use the information to make a case against the illegal lender in order to prosecute them. The investigators work alongside Liaise Officers and will offer you the one-to-one support you need.
Where to get help
As well as reaching out to Stop Loan Sharks, you can also get in touch with us for support on 0300 555 0500. We might be able to put a payment plan in place to help you with your rent. We can run a benefits check to make sure you’re getting all the financial support you’re eligible for. And we can signpost you to other organisations that can help you with debt.
If you’re threatened by someone who lends you money or they’re violent, call the police immediately.