Know the warning signs of a loan shark
What is a loan shark?
Loan sharks are illegal money lenders. They often appear trustworthy, sometimes they’re a neighbour, a parent at the school gate, a work colleague, or even a family friend. Borrowers often don’t realise they’ve been targeted until it’s too late. What starts as a small loan can spiral into a nightmare. As these lenders aren’t regulated, they can demand high charges and interest payments and sometimes use intimidation or violence when you can’t pay.
What are the warning signs?
If you’re considering borrowing money, watch out for these red flags:
- No paperwork or written agreement for the loan.
- Repayments far higher than the amount borrowed.
- Threats or intimidation if you struggle to pay.
- Demands for personal items like your passport, bank card, or valuables as security.
If any of these sound familiar, you may be dealing with a loan shark.
Safer alternatives
If you need to borrow, consider a credit union or a Community Development Finance Institution (CDFI). They offer ethical, safe loans even for people who’ve been refused credit elsewhere. Stop Loan Sharks recommend these providers: Find Your Credit Union, Finding Finance, Nestegg (providers recommended by Stop Loan Sharks).
How to get help
If you think you’ve been targeted, don’t suffer in silence. The England Illegal Money Lending Team (IMLT) known as Stop Loan Sharks – is here to help. They investigate illegal lenders and support victims.
You’ve done nothing wrong by borrowing, the lender is the criminal.
You can contact Stop Loan Sharks confidentially and anonymously if needed:
📞 24/7 Hotline: 0300 555 2222
📱 WhatsApp: 07700 102773
💻 Live Chat: www.stoploansharks.co.uk (Mon–Fri, 9am–5pm)
✉ Email: reportaloanshark@stoploansharks.gov.uk