This week marks Stop Loan Sharks Week 鈥� 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鈥檚 easy to see why someone might turn to an unofficial lender, especially if they鈥檙e 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鈥檛 follow the rules, loan sharks can lend to people who simply can鈥檛 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 鈥榮ecurity鈥�, trapping people in a frightening and dangerous cycle of debt.
If you or someone you know is being targeted by a loan shark, it鈥檚 vital to understand that help is available 鈥� 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鈥檚 tailored to your situation.
You can report a loan shark in confidence to the Illegal Money Lending Team by visiting聽聽or calling 0300 555 2222.
Before borrowing, always check that a lender is properly authorised by visiting the FCA鈥檚 register at聽.
If you’re a customer, we offer free and confidential services聽like employment and money advice as well as support and investment for聽our neighbourhoods. You can find out more here.