This week marks Stop Loan Sharks Week – a national campaign aimed at highlighting the dangers of illegal money lending.
Anyone who offers loans must be authorised by the Financial Conduct Authority (FCA) and follow its strict rules. Those who lend money without this authorisation are operating illegally, known as loan sharks.
It’s easy to see why someone might turn to an unofficial lender, especially if they’re in urgent need of cash and struggling to access mainstream credit.
Loan sharks often present themselves as friendly or helpful, offering fast cash with no paperwork. But this quick fix can lead to long-term harm.
Illegal lenders prey on vulnerable individuals, including those with poor credit scores or limited borrowing options. Because they don’t follow the rules, loan sharks can lend to people who simply can’t afford the repayments.
But the real cost comes later. Victims are often charged extortionate interest rates, which can spiral out of control. Loan sharks can change the terms of the loan whenever they like. They might suddenly increase repayments, add unexpected charges, or demand more money for missed payments.
In many cases, these lenders use intimidation and threats to recover the debt. Victims may be harassed, threatened, or even physically harmed. Some loan sharks take valuables or bank cards as ‘security’, trapping people in a frightening and dangerous cycle of debt.
If you or someone you know is being targeted by a loan shark, it’s vital to understand that help is available – and that you have done nothing wrong. It is the loan shark who is breaking the law.
Support is out there. Speak to a trusted advice service or debt charity for free, confidential guidance that’s tailored to your situation.
You can report a loan shark in confidence to the Illegal Money Lending Team by visiting www.stoploansharks.co.uk or calling 0300 555 2222.
Before borrowing, always check that a lender is properly authorised by visiting the FCA’s register at www.fca.org.uk.
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