Illegal money lending (loan sharks)

Have you been affected by illegal money lending?

Illegal money lending happens when someone lends money without legal permission or regulation. These lenders are often known as loan sharks.

Loan sharks may seem helpful at first. They might offer quick cash, especially if you’re struggling financially or have been turned down by a bank or other lender. But over time they often demand very high repayments and may use pressure, threats, intimidation or violence to get money back.

The amount you are asked to repay can quickly grow. In one real-life case, someone borrowed £500 but ended up paying back £88,000 while trying to clear the debt.

Loan sharks often target people who are facing financial difficulties. They may deliberately create situations where the debt keeps growing, sometimes encouraging people to take out more loans just to keep up with payments.

If this has happened to you, it is not your fault.

Borrowing money from a loan shark does not mean you have done anything wrong. The person lending the money illegally is committing the crime, not you.

Support is available whether or not you have reported what has happened.

Signs someone may be a loan shark

Loan sharks rarely operate like legal lenders. Some warning signs include:

• No paperwork or written agreement for the loan
• Refusing to clearly explain how much you owe or the interest being charged
• The amount you owe keeps increasing without explanation
• Taking personal items like passports, bank cards or valuables
• Using threats, intimidation or violence if payments are missed
• Pressuring you to do illegal activities to repay the debt

Loan sharks aren’t always strangers. They might be someone you know through your community, neighbourhood or social circle. Sometimes they start by lending very small amounts of money, like £10–£30, before encouraging larger loans with much higher repayments.

Over time, people can become trapped in a cycle where the debt keeps increasing and repayment becomes harder.

If you recognise any of these signs, support organisations can help you understand what’s happening and what steps you can take.

Get the help you need

If you would like information, advice or emotional support, call us on 0800 876 6155. We can listen to what has happened and help you explore what support or next steps are available.

You can get support whether or not you’ve reported what happened to the police.

You can also access support from specialist organisations:

England Illegal Money Lending Team (IMLT) – Supports people affected by loan sharks. They can provide practical advice and emotional support and help you understand your options. You can speak to them whether or not you want to make a report.
Phone: 0300 555 2222
Email: reportaloanshark@stoploansharks.gov.uk

Financial Conduct Authority – You can check if a lender is registered by searching the Financial Services Register. Legal lenders must be authorised by the Financial Conduct Authority (FCA). If a lender isn’t registered, they may be operating illegally.
Phone: 0800 111 6768
Email: consumer.queries@fca.org.uk