Stop loan sharks

06 September 2024


two people discussing holding a piece of paper

Illegal money lenders, also known as loan sharks, are becoming a growing concern around the UK, including in our local communities. Here is how you can spot a loan shark, and what you can do to help stop illegal lending.

Who are loan sharks and how can you spot them? 

Loan sharks are unregulated lenders who deliberately target people in poor financial situations, looking for support in the form of credit. They prey on groups who may have little options for credit and take advantage of their need and vulnerability. While loan sharks may be providing quick relief, they are trapping people in cycles of debt with massive rates of interest and aggressive collection tactics.

According to the Centre for Social Justice, around 1.08 million people in England are currently in debt to a loan shark. That’s roughly 2% of the population – many of whom feel isolated, scared, and unsure of where to turn. At GWCU, we want our members to know they’re not alone. Loan sharks are never the only option, and help is always available. 

What do illegal lender ads look like? 

It has become apparent that more and more loan sharks are advertising their illegal services on flyers and cards on public noticeboards. There have been reports that these lenders are advertising in supermarkets, post offices, community centres, shops and more. The cards do not comply with credit advertising requirements and may even belong to unauthorised lenders. Look out for these things.

  • Too good to be true: ads that make promises of ‘quick cash’, ‘no credit check’, ‘money available now’ are often signs of an illegal lender. Other suspicious language includes ‘no paperwork needed’, ‘cash in hand’, and ‘no references required’. 
  • Lack of company information: Ads without information of a company, website, or address are often red flags for an illegal lender. They will often only contain a phone number and promises of cash.  
  • Missing lending requirements: Lenders are required to display interest rates, borrowing amounts, fees, and other important information. If this is missing from an advertisement, it is likely related to an illegal lender. 

How can you help stop loan sharks? 

If you spot an advertisement for a loan shark, here is how you can report it. 

  1. Take a photo of the advertisement 

  1. Note down where you spotted it 

  1. Fill in the required information (keep in mind, you can stay anonymous or provide as many details as you wish) 

  1. Let Stop Loan Sharks deal with the rest 

Most importantly, do not contact the poster of the advertisement, as it may affect the work that Stop Loan Sharks is doing. Additionally, please do not approach the owner of the noticeboard, as they have not done anything wrong. 

If you have any questions about this campaign or would like to learn more about illegal lending and how you can support, visit the Stop Loan Sharks website. To report an illegal lender, fill out the form here.

How GWCU offers a safer way forward 

At Great Western Credit Union, we believe everyone should have access to fair, affordable credit, we aim to offer safer alternatives to high-cost borrowing, making sure our members can access support when things feel unmanageable. 

Our members’ financial wellbeing is at the heart of everything we do. We understand how overwhelming debt can feel and that asking for help is not always easy, which is why we’re here to offer practical, affordable solutions that help people move forward with confidence and take those first steps to regain control of their finances.  

One of the ways we do this is through our debt consolidation loan. Designed to support those with multiple existing debts, it helps reduce financial strain by combining repayments into one affordable monthly payment. Since launching, this loan has helped clear nearly 470 separate debts and saved our members more than ÂŁ156,000 in interest, showing what’s possible when the right support is in place. 

You don’t have to face it alone 

We understand it’s not always easy to ask for help. That’s why our friendly Member Support team is here to listen, without judgement. Whether you’re worried about your current loan, thinking about consolidating debt, or simply unsure of your next steps – we’re here to support you. Get in touch with us here.

And if you or someone you know is affected by an illegal lender, please contact Stop Loan Sharks. Their confidential, non-judgemental support line is available 24/7 on 0300 555 2222 or visit their website to access their reporting form and Live Chat option, available 9am to 5pm, Monday to Friday.