Borrowing from someone you know can feel like an easy solution in a difficult moment. But if it starts to feel stressful or uncomfortable, it could be a sign of illegal lending.
A loan shark, or illegal money lender, is someone who lends money illegally, without proper authorisation from the Financial Conduct Authority (FCA).
Because they are operating outside of the law, they don’t have to follow the rules. They can decide how much you pay back, when you repay, and what happens if you can't.
Loan Sharks are not always easy to recognise. They might be a neighbour, a family friend, someone from work or even another parent at the school gate.
They often appear helpful at first, offering what seems like a quick and easy loan. However, the situations can quickly escalate. Borrowers can find themselves facing intimidation, threats or even violence if they struggle to pay.
Warning signs to indicate that you could be dealing with an illegal lender include:
- being given no paperwork upon the agreement of a loan
- being given no detailed information about a loan
- having items such as a bank card or passport taken from you until the debt is paid
- being threatened or intimidated if you do not pay on time
Councillor Ian Cresswell, Cabinet Member for Environment and Communities at Worcestershire County Council, said: “We know from the Public Health, Healthy Worcestershire sessions that many people worry about being scammed or taken advantage of. It can be hard to know who to trust, especially when someone appears friendly or offers help at a difficult time. We want residents to understand the signs of illegal money lending and to feel confident reaching out for support. No one should feel they have to deal with this alone, and help is always available before things get out of hand.”
The England Illegal Money Lending Team (IMLT), known as Stop Loan Sharks, is a national organisation that investigates and prosecutes loan sharks and supports those who have borrowed.
Dave Benbow, head of the IMLT added: "Illegal lenders prey on the vulnerable. They often appear to be a friend at first, offering a favour, but they can quickly become threatening or even violent. Borrowers can find themselves paying back much more than they borrowed, and some are trapped in a cycle of debt.
"We would urge anyone who is in this situation to contact our team for confidential help and advice. We are here to help not to judge and people should remember they have done nothing wrong, it is the illegal lender who is acting illegally."
If you or someone you know is affected by illegal money lending, contact Stop Loan Sharks for support and advice without delay.
There is a confidential 24/7 hotline available on 0300 555 2222 and a Live Chat facility is available on the Stop Loan Sharks website.
The team can also be contacted via WhatsApp message on 07700 102773 between 9:00am and 8:00pm Monday to Friday.
For further information, advice and more ways to get in touch, visit the Stop Loan Sharks website.
Remember that you are not in trouble if you have borrowed money from a loan shark. You should feel no blame or shame, they are the people committing a crime, not you.
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