Being wise to loan sharks this winter

by | Dec 15, 2022 | Uncategorised

What is a loan shark?

A loan shark is an unlicensed money lender who hasn’t been authorised by the FCA (Financial Conduct Authority). 

They often work from home, charge very high interest rates and are unlikely to provide you with any paperwork.

Loan sharks often take illegal action to collect money they’ve lent you, such as making threats, violence or taking away credit cards or valuables. 

How to spot a loan shark

Signs you might be be borrowing from a loan shark are if they: 

  • offered you a cash loan 
  • didn’t give you paperwork 
  • added huge amounts of interest to your loan
  • threatened or harassed you 
  • made you scared of people finding out 
  • took your bank card, passport or other valuables from you 

If someone who has lent you money is threatening or violent, you should contact the police – even if it is someone you know, such as a friend or family member. 

Borrowing from friends and family 

Not all lending needs to be authorised by the FCA – for example informal one-off loans between friends and family against the law. 

Even if a loan is informal, anyone who lends you money can’t do anything illegal when they collect it, such as harassing you. 


Borrowing from legal lenders

There are a lot of ways you can borrow money. Borrowing money can also be called ‘credit’.

 Before you borrow money it’s important to make sure you get the best deal you can and will be able to keep up the repayments. If you don’t keep up the repayments, you could be taken to court and might even lose your home or other valuable possessions.

 If you are finding it difficult to get a loan or credit, you might be able to get a loan from a credit union.

To find a credit union near you and check out what your local credit union offers, you can:

How to check if a lender is authorised? 

You can find out if a money lender is authorised by checking the register on the FCA website at www.fca.org.uk. 

What to do if you owe money to a loan shark? 

If you’re worried about an illegal money lender, you can speak in confidence to the Illegal Money Lending Hotline on 0300 555 2222. 

You can find more information on reporting loan sharks on the Illegal Money Lending Team website by visiting stoploansharks.co.uk. 


Get free, confidential advice about debt 

If you’re in debt or are thinking of borrowing from a loan shark, get advice first. Get in touch with our debt team on 0808 278 7804 or by making a referral.

Please note our services will be reduced across Bury & Bolton from 1pm Monday 23rd December 2024 and will resume as normal on Thursday 2nd January 2025. See below ways we can support you during this period:

We will be actioning online referrals on 24th, 27th, 30th and 31st December

This service will be available 6pm to 9pm on: 27th, 28th, 29th and 30th December 2024

Emergency contact details for local authorities are:

Bury – https://www.bury.gov.uk/emergencies/emergency-contact-numbers

Bolton – https://www.bolton.gov.uk/council/emergency-contacts

Call our Help Through Hardship line on 0808 208 2138, this line is open 9am-5pm on 24th, 27th, 30th, 31st December

Additional resources for 24/7 self-help advice are also available on

www.citizensadvice.org.uk

The National Domestic Abuse helpline is open 24 hours a day and can be contacted on 0808 2000 247. If you’re in an emergency situation you should call 999

National Debt Line Debt helpline: 0800 240 4420

Relay UK – if you can’t hear or speak on the phone, you can type what you want to say: 18001 then 0800 240 4420

You can use Relay UK with an app or a textphone. There’s no extra charge to use it. Find out how to use Relay UK on the Relay UK website.

This time of year can be hard. But there’s support available if you need it.

The Samaritans is open 24 hours a day, 365 days a year and can be contacted on 116 123 or by email.

Switchboard is a helpline for LGBT+ people and is open 10am until 10pm everyday. You can call them on 0800 0119 100 or use their online chat.

Shout 85258 is a 24 hours a day text service which offers mental health support. You can contact them by texting SHOUT to 85258.

The Silver Line — a helpline for older people ran by Age UK. Call 0800 4 70 80 90 24hrs a day

NSPCC Helpline — if you’re worried about a child. Call 0808 800 5000 (Mon-Fri 10am-8pm)

Power cut 105 — if you have a power cut Call 105 24hrs a day

National Gambling Helpline Call 0808 8020 133 24 hours a day

Skip to content

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close