Most people do not report loan sharks due to fear. Loans sharks will say and do anything to keep you under their control, however, once this is reported, you get one-to-one dedicated help and support.
This document looks at breaking down the barriers and hopefully will provide reassurance if you do want to report a loan shark:
If you have been approached by someone you think is a loan shark, you need to report them to the Illegal Lending Team using 01204 328000.
Contact the Police if you are in immediate danger.
You can also report a loan shark using any of the following methods:
The Financial Conduct Authority (FCA) keeps details of all licensed lenders, as well as everyone who has applied for a licence or has had one taken away or suspended.
If a lender is not listed as having a current licence, DO NOT borrow money from them and DO NOT let them enter your home.
To check if a lender is legitimate, go to the Financial Conduct Authority Website.
A loan shark could be male, female, young or old, so there its not always easy to spot a loan shark by how they look.
| Paperwork | Offer little or no paperwork, such as a licence, credit agreement or record of payments |
| Receipts | Won't provide you with receipts or proof of payments |
| Increase Debt | Increase the debt or add additional amounts to it without your permission |
| Information | Refuse to give information, such as the interest rate or how much you still owe |
| Never ending debt | Not allow you to settle your debt |
| Get Nasty |
They may resort to intimidation, threats or violence |
| Crime | Often are involved in petty or organised crime |
| May suggest other forms of payment | May involve you and your family in petty crime, for example
|
Although some loan sharks may resort to intimidation and even violence, they are not beyond the law. Any lender, licensed or unlicensed who harasses you is breaking the law.
Some loan sharks will threaten you by saying you will be prosecuted and even sent to prison if you don’t pay up. This can’t happen. An unlicensed lender has no legal right to recover the debt because the loan is illegal.
Please remember, if you have borrowed money from a loan shark, you have done nothing wrong. They are breaking the law, not you.
The England Illegal Money Lending Team has a hotline that is open 24 hours a day, 365 days a year and provides the following service:
Visit the Stop Loan Sharks website to learn more about the England Illegal Money Lending Team, or get in touch on 0300 555 2222 if you think they could help you.