A loan shark – or illegal money lender - is someone who lends money illegally without proper authorisation from the Financial Conduct Authority (FCA).
That means if you borrow from them, they don’t have to follow the rules – they can decide how much you pay back and when.
These criminals are not always easy to spot - they can be a friend, a fellow service member, even a senior officer.
Whoever they are, they will usually appear as a friendly face, offering you a favour. They may tell you that what they are offering is nothing more than peer-to-peer lending and their offer may seem hard to resist.
But very quickly the situation can spiral out of control, and you could find yourself having to pay back much more than you initially borrowed. You might even be subjected to threats, violence and intimidation if you struggle to make a payment.
There are some signs that you can look out for, which may indicate that an agreement has crossed the line from peer-to-peer lending into more sinister and dangerous territory.
They include:
The England Illegal Money Lending Team (IMLT), also known as Stop Loan Sharks, is a dedicated team of specialists that are leading the fight against loan sharks across the country.
Set up 20 years ago, the team has helped thousands of people escape the clutches of these criminals and wiped out more than £91.6 million worth of illegal debt.
The Stop Loan Sharks team is committed to investigating reports of illegal lending and prosecuting those responsible. Over the past 20 years, it has successfully prosecuted more than 427 illegal lenders, leading to jail terms of 609 years.
They can offer confidential, expert help and advice, helping you escape the clutches of the loan shark and directing you towards safer ways of borrowing, such as credit unions or CDFIs (Community Development Finance Institutions).
There is a credit union service specially for military personnel who may have limited access to mainstream financial services.
Joining Forces, made up of three of the UK’s leading Credit Unions, Plane Saver, Serve & Protect and London Mutual, provides loans for Service personnel, with repayments taken straight from their pay. It was launched under the Armed Forces Covenant.
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 24/7 hotline available on 0300 555 2222 and a Live Chat facility is available on the website stoploansharks.co.uk between 9am and 5pm, Monday to Friday. All calls are treated in absolute confidence.
For further information, advice and more ways to get in touch, visit stoploansharks.co.uk
To find out more about Joining Forces go to joiningforcescu.co.uk
If you are in Scotland, please go to: Scottish Illegal Money Lending Unit
For those in Wales, the link is: Home - Stop Loan Sharks Wales : Stop Loan Sharks Wales
If you are in Northern Ireland, please contact t wlandst100/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/7NB846VM/stoploansharks.co.uk he England Stop Loan Sharks team, and the NI Police POC will be provided.
They 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 you if you do not pay on time
- being told to pay back much more than you initially borrowed – some lenders use the term ‘double bubble’, where the original loan amount is doubled
- being one of a number of people who are in debt to one lender
If you think you may have borrowed from a loan shark, it’s important to remember that you have not broken the law, and we will not judge. You should feel no blame or shame – the lender is committing a crime, not you.
The England Illegal Money Lending Team (IMLT), also known as Stop Loan Sharks, is a dedicated team of specialists that are leading the fight against loan sharks across the country.
Set up 20 years ago, the team has helped thousands of people escape the clutches of these criminals and wiped out more than £91.6 million worth of illegal debt.
CASE STUDY: The people helped by the IMLT have included military personnel. One of them was Kevin*
Kevin was a young soldier who borrowed from a fellow soldier he thought was his mate. He borrowed £400, but he ended up paying back £4,000. Kevin had other debts including three payday loans and he borrowed the money from his so-called friend to pay these loans back. His friend gave him no paperwork.
One of Kevin’s main concerns was that he might get thrown out of the Army as he had been led to believe that the Army frowned on soldiers that were in debt. In this case the Army was sensitive towards his plight and moved him to a different barracks to get away from the loan shark. Kevin said he was much happier in his new barracks.
The soldier he had borrowed from was found to have set up an unauthorised lending business charging 40% interest to junior soldiers and threatening them if they failed to pay him back.
When Kevin realised something was wrong, he contacted the Stop Loan Sharks team in confidence and told them about his fears. He was assured that he had done nothing wrong, and a subsequent IMLT investigation meant his lender was successfully prosecuted.
*Kevin’s name has been changed
The Stop Loan Sharks team is committed to investigating reports of illegal lending and prosecuting those responsible. Over the past 20 years, it has successfully prosecuted more than 427 illegal lenders, leading to jail terms of 609 years.
They can offer confidential, expert help and advice, helping you escape the clutches of the loan shark and directing you towards safer ways of borrowing, such as credit unions or CDFIs (Community Development Finance Institutions).
There is a credit union service specially for military personnel who may have limited access to mainstream financial services.
Joining Forces, made up of three of the UK’s leading Credit Unions, Plane Saver, Serve & Protect and London Mutual, provides loans for Service personnel, with repayments taken straight from their pay. It was launched under the Armed Forces Covenant.
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 24/7 hotline available on 0300 555 2222 and a Live Chat facility is available on the website stoploansharks.co.uk between 9am and 5pm, Monday to Friday. All calls are treated in absolute confidence.
For further information, advice and more ways to get in touch, visit stoploansharks.co.uk
To find out more about Joining Forces go to joiningforcescu.co.uk
If you are in Scotland, please go to: Scottish Illegal Money Lending Unit
For those in Wales, the link is: Home - Stop Loan Sharks Wales : Stop Loan Sharks Wales
If you are in Northern Ireland, please contact t wlandst100/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/7NB846VM/stoploansharks.co.uk he England Stop Loan Sharks team, and the NI Police POC will be provided.
