Here is how you can spot a loan shark, and what you can do to help stop illegal lending.
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.
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.
What do illegal lender ads look like?
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?
First, we ask that you keep an eye out for advertisements like this (https://www.stoploansharks.co.uk/report-a-loan-shark-advert/). If you spot these in public, here is how you can report it.
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Take a photo of the advertisement
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Note down where you spotted it
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Fill in the required information (keep in mind, you can stay anonymous or provide as many details as you wish)
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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.
