At certain times of year, many people feel a squeeze on their finances. Seasonal income gaps, rising costs, or unexpected bills can make it tempting to look for quick ways to borrow money. But it’s important to know the risks of illegal lending and where to find safe, trusted support.
What is a loan shark?
A loan shark is someone who lends money without being authorised by the Financial Conduct Authority (FCA).
Loan sharks often target people who may be struggling financially. They often charge very high interest rates and may use intimidation or threats to get their money back.
Warning signs to look out for
It’s not always easy to spot a loan shark, especially as they may pretend to be a friend or someone trying to help. However, some common warning signs include:
- Little or no paperwork when you borrow money.
- Very high interest or unclear repayment terms.
- Being asked to hand over bank cards, passports or valuables.
- Pressure, threats or intimidation if you can’t pay.
- Being told not to tell anyone about the loan.
If something doesn’t feel right, trust your instincts and seek advice.
Safe alternatives to borrowing
If you need financial support, there are safer options available. You don’t have to face things alone. You could consider:
• Credit unions, such as Westcountry Savings and Loans, which offer fair and affordable loans.
• Speaking to your bank about support or repayment options.
• Accessing budgeting advice and financial guidance.
Credit unions are a good place to start, as they provide responsible lending and help you build confidence with managing money.
Getting help early can stop problems from becoming more serious, so don’t wait to reach out.
How to report a loan shark
If you think you’ve come across a loan shark, you can report it safely and confidentially. Support is available 24 hours a day, and you can remain anonymous.
The Stop Loan Sharks team offers free advice and can help you understand your options and stay safe.
Reporting illegal lending helps protect not just you, but others in your community too.
Taking control of your finances can feel difficult, especially during challenging times. But by knowing the signs of illegal lending and choosing safe ways to borrow, you can protect yourself and your money. If you’re unsure, always seek advice – help is out there when you need it.