Every Loan › Loan sharks: warning signs and where to get help
Loan sharks: warning signs and where to get help
A loan shark is someone who lends money without FCA authorisation. It is a crime, and the borrower is never the one in trouble. Help is free and confidential.
What is a loan shark?
An illegal money lender lends without being authorised by the FCA. They may seem friendly at first, but charge very high interest, add costs that were not agreed and use fear or pressure to collect. They often target people who feel they have no other options.
Warning signs
- No written agreement, or an agreement with no clear details of the cost.
- The lender holds on to your bank card, PIN, passport, benefit book or other documents.
- The amount you owe keeps going up, however much you pay.
- Threats, intimidation, or turning up at your home or workplace.
- Offers on social media, by text or through friends of friends.
- Not on the FCA register (how to check).
If you have borrowed from one
The England Illegal Money Lending Team, known as Stop Loan Sharks, offers free, confidential support and covers England only. Its website says you have done nothing wrong. You can phone 0300 555 2222, use live chat or WhatsApp, or fill in a form for a call back; check the site for current opening hours. Its officers work with you and with the police. They will not judge you, and in many cases they can help even where the debt is large. If you live in Scotland, Wales or Northern Ireland, different services apply, so search for the right team for your nation. If you are in immediate danger, call 999.
What to do
- Do not hand over more money until you have had advice, if you can do so safely.
- Keep a record of dates, amounts, messages and what has been paid.
- Contact Stop Loan Sharks for confidential support.
- Talk to a free debt adviser about any other debts (free debt help).
Are the debts legally enforceable?
Whether you must repay an illegal lender is a legal question that depends on your situation, so get advice rather than assume. Stop Loan Sharks can explain this clearly and safely.
Prevention
The best protection is knowing alternatives exist before you are desperate: speak to your creditors, ask about hardship support, look at credit unions and check entitlement to benefits. See types of credit and the FCA price cap for how legitimate high-cost lending is controlled.
Helping someone else
If a friend or relative is in this situation, you can contact the team on their behalf. Stay calm, avoid confronting the lender and encourage them to seek help.
Why people end up here
Many people turn to an illegal lender after being refused mainstream credit, or when an emergency strikes. Loan sharks often offer cash quickly with no questions. Over time the debt can grow out of control and the lender can begin to dictate what you do. Knowing in advance that confidential help exists makes it easier to act early. Free debt advisers can look at your whole situation, and you do not have to deal with it alone or in silence.
Your safety and privacy
Stop Loan Sharks does not need you to name the lender straight away, and it will not pass on your details without discussing it. Many people worry about reprisals; the team works with police to protect borrowers, and can support you through any investigation. Tell someone you trust if you feel able to, and keep any messages and bank statements safe.
This is general information, not financial advice. We're not a lender or broker and don't arrange credit.
Frequently asked questions
Is it illegal to borrow from a loan shark?
No. Lending without authorisation is the crime. Stop Loan Sharks treats borrowers as victims.
Is Stop Loan Sharks free?
Yes. It offers free, confidential support, and covers England only.
What if I am in danger?
Call 999.