How to stay safe from loan sharks
Tracy Fairhurst, LIAISE Officer – Northwest Region
Could you spot a loan shark?
Many people think they are easy to identify, but the reality is very different. Loan sharks often operate within communities and can be someone you know and trust, such as a neighbour, friend, colleague or even another parent at the school gates.
A loan shark, also known as an illegal money lender, is someone who lends money without the proper authorisation from the Financial Conduct Authority (FCA). Because they operate outside the law, they do not have to follow the rules that legitimate lenders do. They can set unfair repayment terms, charge excessive amounts and use intimidation to collect debts.
Loan sharks often present themselves as helpful and friendly, offering quick cash when money is tight. While the offer may seem like a lifeline at first, borrowers can quickly find themselves trapped in a cycle of debt. Those who struggle to keep up with repayments may face threats, harassment, violence or other forms of intimidation.
Spotting the warning signs
If you are considering borrowing money or know someone who has, there are some key warning signs that could indicate an illegal lender is involved:
- No paperwork is provided when the loan is agreed.
- There is no clear information about the amount borrowed or what needs to be repaid.
- Personal items, such as a bank card, passport or benefits card, are taken as security.
- The lender uses threats, intimidation or harassment if repayments are missed or delayed.
Help is available
The England Illegal Money Lending Team (IMLT), also known as Stop Loan Sharks, has been tackling illegal money lending for more than 20 years. During that time, the team has helped tens of thousands of people escape the influence of loan sharks, written off more than £92 million in illegal debt and secured hundreds of prosecutions against illegal lenders.
Anyone affected by a loan shark can get free, confidential and non-judgemental support. You do not have to give your name, and you do not need to make a formal report if you are not ready. The team will work at your pace, helping you understand your options and providing support when you need it.
Support for organisations and professionals
If you work with people who may be affected by illegal money lending, you can contact Stop Loan Sharks on their behalf for advice and guidance. The team regularly works with community organisations, local authorities, charities, housing providers, healthcare services and other professionals to support people who may be experiencing problems with loan sharks.
Stop Loan Sharks also offers free training to help staff learn more about how to spot the signs of illegal lending and how to help people access support, as well as a range of resources to raise awareness.
How to get in touch
There are several ways to contact Stop Loan Sharks:
- 24/7 confidential hotline: 0300 555 2222. Calls are answered by real officers, not automated services.
- WhatsApp: 07700 102773 (monitored by officers from 9am to 8pm, Monday to Friday).
- Live Chat: Available via stoploansharks.co.uk from 9am to 8pm on weekdays.
- Email: reportaloanshark@stoploansharks.gov.uk
Remember: Borrowers are not in trouble
If you have borrowed money from a loan shark, you are not in trouble. There is no shame or blame in asking for help. It is the loan shark who is committing a crime, not the borrower. Support is available, and taking that first step could help you regain control and move forward with confidence.
For advice, information, additional contact options and details of resources and training available visit the website www.stoploansharks.co.uk
ENDS
Issued by Sally-Anne Youll, IMLT press officer. For media enquiries, please email Sally-Anne.Youll@birmingham.gov.uk or call 07840 712850.
