Could you have borrowed money from a Loan Shark??

With the rising cost of living, there is growing concern that people are turning to loan sharks to help pay for food, rent/mortgage and other priority bills. Below is some helpful information so you can spot a loan shark and how to get support if you, or someone you know, is affected by this.

What is a loan shark

In order to lend money commercially, a person or business usually needs to be authorised by the Financial Conduct Authority (FCA). When money is being lent without this authorisation, it is possible you could be borrowing from a loan shark. Not all lending needs to be FCA authorised though, one off, informal loans between family and friends aren’t against the law. Even if a loan is informal, anyone who lends you money cannot do anything illegal when they collect it, such as harassing you. Loan sharks often charge very high interest, they tend not to provide much paperwork and there are often threats of intimidation, your possessions being taken or in extreme circumstances, actual violence against you or your family.

What to do if you think you have borrowed money from a Loan Shark

If you suspect the person you have borrowed money from is a loan shark then there is help available. The Illegal Money Lending Team (IMLT) was initially set up in 2004 as a pilot project to tackle the problem in Birmingham. The team helps to prosecute illegal money lenders, working in conjunction with the police, trading standards and debt advice services as well as providing support for the people who the loan sharks have exploited.

The IMLT can be contacted, anonymously if needed, in a variety of ways. You can call on 0300 555 2222 at any time day or night. You can also email at [email protected] or you can text the lender’s details to 07860 022 116. There is also an online form which can be used to contact the team through the website http://www.stoploansharks.co.uk/report-a-loan-shark/.

Check if your lender is authorised

You can check the credentials of any potential lender by going to the FCA website at https://register.fca.org.uk/s/. If they are not authorised to lend money, then they have broken the law, not you.

Has a friend borrowed money from a loan shark?

If you are concerned about a friend or family member and you suspect they may have borrowed money from a loan shark, the Illegal Money Lending Team have some common warning signs:

• Debt that keeps growing even though they’re making regular payments
• Saying bad things will happen to them if they don’t pay on time
• Feeling afraid or anxious about visitors to their home
• Stopping seeing friends and family – emotionally withdrawing from others
• Handing over all their benefits and money to someone they owe money to
• Handing over personal items (bank card, passport, jewellery) to someone they owe money to
• Receiving threatening text messages about money being owed
• Being forced into having sex or committing crimes to pay off their debts
• Being anxious, depressed, withdrawn and experiencing suicidal thoughts
• Showing signs of physical violence, such as bruises, sprains or cuts
• Not wanting to leave their house and shutting curtains to avoid being noticed
You can always speak to the IMLT to report any concerns or get some advice by contacting them on their 24 hour helpline on 0300 555 2222.