Beware of Loan Sharks!

WHAT IS A LOAN SHARK?

All money lenders must be authorised by the Financial Conduct Authority (FCA) to legally lend money. They generally operate outside the formal financial system, bypassing the regulations that apply to banks or licensed lenders. If a lender is not authorised, they are committing a criminal offence. These unauthorised lenders are known as loan sharks.

There are 1.08 million people in debt to a loan shark in England.

Loan sharks provide quick "informal" loans and charge exorbitantly high interest rates, far exceeding legal limits. They often target individuals who are vulnerable, facing financial difficulties, or lack access to formal banking. You might hear about them from a friend, at a pub, or through social media.

When lending money, they rarely provide any paperwork, claiming it's unnecessary, making it difficult for you to prove the loan terms. Consequently, they can add extra charges or large interest amounts without reason. Often, they take your bank card, passport, watch, or other valuables as "security."

WHAT TO DO?

• If someone who lent you money threatens or is violent, contact the police immediately by calling 999.

• Check if a lender is authorised - If you borrowed money from someone not authorised by the FCA, you haven't broken the law, they have. You can verify this on the FCA website (FCA Firm Checker | FCA) or by calling Stop Loan Sharks 24/7 at 0300 555 2222.

• Call Stop The Loan Sharks 24/7 at 0300 555 2222 for support or visit their website (https://www.stoploansharks.co.uk) – they investigate and prosecute loan sharks.Their official name is the England Illegal Money Lending Team, and they are the leading organisation in England with the authority to prosecute loan sharks and illegal money lenders. They provide support to people who have borrowed from a loan shark, even if they choose not to make an official report.

Don’t suffer in silence, the problem won’t go away and will only get worse.  Take action today.

If you need help, or are in debt and think the only way out is to borrow from a loan shark, please call us on 07387 66 83 22 and we can have a confidential chat as to how your debts can be managed so you don’t need to use a loan shark.