A ‘loan shark’ is anyone who lends money without having a licence to from the Office of Fair Trading (OFT). These unlicensed money-lenders are illegal.

How do loan sharks work?

Loan sharks tend to:

• Rarely give paperwork to the people they've loaned money to - making it very difficult to keep track of how much is owed
• Often use threats and violence to get more money if payments are missed
• Charge extremely high rates of interest and also add other 'charges' to loans whenever they want
• They take away people's bank cards as 'security'.

People involved in illegal money lending tend to be part of other criminal activities, too. This can include gun and knife crime, counterfeiting and drug-dealing.

What to do if you've borrowed from an unlicensed money-lender

If you have borrowed money from someone who doesn't have a licence, you haven't broken the law - they have.

Have you or anyone you know:

• Been offered a cash loan without paperwork?
• Been threatened when you couldn't pay?
• Had your benefit or bank card taken from you?
• Had a loan which keeps growing even though you are making payments?

If you can answer yes to the above you may have been bitten by a Loan Shark.
For confidential help and advice contact the Illegal Money Lending Team 0300 555 2222 (local call rate, including inclusive minutes from mobiles)

You can report them in confidence, by:

• Calling 0300 555 2222
• Texting loan shark (loan space shark space + your message) and the details you want to pass on to 60003, or
• Sending an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it
• Website - www.direct.gov.uk/stoploansharks

More information:

• Common Myths About Loan Sharks (via Directgov)
  
• Diferent ways of borrowing money
  
• Find a local Credit Union
  
• Where to get advice and support on debt
  
• Visit the Money Made Clear Website 
  (A no selling, no jargon, just facts website run by the Financial Services Authority)

If you would like advice with any Welfare Benefit issues you can contact us on 0300 303 2500 and we will be happy help.