Don't get caught out
by loan sharks
If you are concerned about your
safety, call 999 immediately
Watch out for loan sharks this Christmas
Did you know that Christmas is the second highest reason that people borrow money from predatory loan sharks? It's an expensive time of year, with all the food, presents and events that you may need to pay for.
But it is never worth borrowing money from loan sharks to pay for as their high-cost loans can trap people into a cycle of debt and misery.
What is a loan shark?
A moneylender needs to be authorised by the Financial Conduct Authority (FCA) to lend money, otherwise, they are breaking the law. Moneylenders not authorised by the FCA are known as loan sharks.
What's wrong with loan sharks?
Loan sharks will often charge very high-interest rates and will often not provide the proper paperwork to confirm your arrangements.
They will also often take other illegal actions to collect the money, such as threatening violence or taking away your possessions.
Loan sharks can leave people scared and vulnerable, paying over the odds and without a legal contract.
How do you know if you have borrowed from a loan shark?
If you can answer yes to one or more of these questions, you might have borrowed money from a loan shark:
- Were you offered a cash loan?
- Did you not receive any paperwork from the moneylender?
- Is there a large amount of interest or APR on the loan?
- Have you been threatened for missing payments?
- Has the lender taken your bank card, benefit card, passport or any other valuables from you?
- Are you scared of people finding out about the loan?
What should you do if you have borrowed from a loan shark?
It is important to remember that you are not in trouble if you have borrowed cash or are paying back a loan from an illegal money lender. The loan shark has broken the law, not you.
Stop Loan Sharks has a safe, online reporting form that you can use to report illegal money lenders.
The Illegal Money Lending Team (IMLT) investigates and prosecutes illegal money lenders and offers support to those who have borrowed from them.
You can call them on 0300 555 2222, or visit their website using the button below to speak to them over live chat or complete their online form.
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