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Dealing with loan sharks

The best advice for dealing with loan sharks is 'don't'. They're unlicensed moneylenders who charge very high interest rates and sometimes use threats and violence to frighten people who can't pay back their loan.

What is a loan shark?

A loan shark is an unlicensed moneylender. Licensed moneylenders are regulated by the Office of Fair Trading (OFT) and must follow the OFT's codes of practice.

Because they're not licensed, loan sharks operate outside the law. If you borrow from them it's likely you'll:

  • get a loan on very bad terms
  • pay an extortionate rate of interest (rates as high as 131,000 per cent APR have been recorded)
  • be harassed if you get behind with your repayments
  • be pressured into borrowing more from them to repay one debt with another

If you have borrowed from an illegal money lender, you haven't committed a crime - they have, and they could receive a prison sentence. 

Report a loan shark in England

  • If you need to report a loan shark in confidence: phone 0300 555 2222
  • text LOAN SHARK and your details to 60003
  • email the Stop Loan Sharks team: reportaloan@stoploansharks.gov.uk

Read Anne and Mike's stories to find out how the team at Stop Loan Sharks can help.

For more information go to the government website:

www.direct.gov.uk/stoploansharks