Loan sharks
Who are they ?
Loan sharks are illegal, unlicensed lenders who operate outside the law and are not regulated by the Financial Conduct Authority (FCA). They often charge excessively high interest rates and use unsafe and unfair lending practices. These lenders typically target people in urgent need of money and may use intimidation, threats, or even violence to recover payments.
Why are they so dangerous?
Loan sharks are dangerous for several key reasons:
1. Excessively High Interest Rates: They often charge astronomical interest, making it nearly impossible to repay the loan. This traps borrowers in a cycle of debt.
2. Illegal and Unregulated: Because they operate outside the law, they are not bound by any consumer protection rules or regulations set by the Financial Conduct Authority (FCA). Borrowers have no legal rights or safeguards.
3. Intimidation and Violence: Loan sharks may use threats, harassment, and even physical violence to collect repayments, creating a climate of fear for borrowers and their families.
4. Lack of Transparency: Terms and conditions are often unclear or not provided at all, so borrowers don’t fully understand what they owe or how much they’ll need to pay back.
5. Targeting Vulnerable People: They prey on individuals in desperate situations—often those who are unemployed, in debt, or unable to get credit through legal means.
6. No Recourse: Victims may feel too afraid or ashamed to report loan sharks to the authorities, leaving them isolated and with few options for help.
In short, loan sharks exploit people’s financial distress and use fear and coercion to maintain control, making them a serious threat to personal safety and financial well-being.
Stop Loan sharks
Stop Loan Sharks is a government-funded team that tackles illegal money lending in England. They investigate loan sharks, support victims, and bring offenders to justice. The service is confidential, free, and available 24/7.
If you or someone you know is being exploited by an illegal lender, Stop Loan Sharks can help. They offer practical and emotional support without judgment, and victims are never prosecuted.