BREAKING THE SILENCE
IT’S TIME TO TALK ABOUT ILLEGAL LENDING

England Illegal Money Lending Team

Illegal money lending has a devastating, traumatic and long-lasting impact on victims, families and wider communities. This is driven by the predatory behaviour of loan sharks, which involves significant levels of harassment, intimidation and violence.

Ruthless loan sharks exploit people in desperate need of quick cash. They charge extortionate rates of interest and trap their victims in a cycle of debt that can last for years and even decades.

A report published by the Centre for Social Justice estimated 1.08 million people in England could be borrowing from an illegal money lender – more commonly known as a loan shark. This figure has more than trebled since 2010.

Tens of thousands of people are ensnared by loan sharks each year and their debt can easily spiral out of control. These unscrupulous lenders befriend their victims and seek only to exploit people’s financial vulnerabilities. They often charge exorbitant interest rates and apply threats, fear or force to ensure repayment of loans.

Almost two thirds (64%) of loan shark victims in England were introduced to the lender by friends or family, and over half (56%) had considered the loan shark a friend before borrowing from them. Predatory lenders can come in many different guises, which can make it difficult to identify them.

The England Illegal Money Lending Team’s (IMLT) latest campaign, #LetsTalkLoanSharks, aims to raise awareness about these predatory practices and how you as a professional can help identify them.

With price increases on everything from fuel to food making it increasingly tough for households to make ends meet, unlicensed lenders are stepping in, offering loans to the desperate at astronomical interest rates.

Illegal money lending is on the rise, but it’s still a crime that remains largely underreported. By raising awareness in your community and encouraging clients to speak out, you can help fight this scourge and bring criminals to justice.

Loan sharks are often seen as a last resort for people who have no other option for obtaining credit, including those with poor credit histories who are rejected by mainstream lenders. When you really need money but have a negative rating, an unexpected bill can be a critical moment that threatens to lead you down a dangerous path.

The psychological impact of loan sharks is huge. These criminals are skilled at instilling fear into victims and their families, causing them to feel trapped, helpless and afraid. This often leads to the breakdown of relationships with family and friends, job loss and depression.

The IMLT ran its national Stop Loan Sharks Week campaign from the 26 September to 2 October 2022 to highlight the help available to those who have been targeted by loan sharks, as well as increase awareness of this hidden crime in communities.

This year’s campaign focused on reaching people who may not realise they are being exploited by loan sharks, as well as raising awareness of the support available to those who have already come into contact with an illegal lender. The #LetsTalkLoanSharks campaign aims to remove the shame and banish the stigma around illegal money lending by encouraging conversations among families, friends, neighbours, customers, colleagues and communities.

It is important to talk about loan sharks and the impact that they have on people. It is not a taboo topic, but a real issue that many are facing, and we need to do all we can to help those affected.

We want to give frontline professionals the tools, knowledge and confidence to speak to clients and service users about loan sharks. We’re encouraging them to raise the issue in conversations, encouraging people to talk about their experiences and help victims access specialist support.

The campaign is dedicated to stopping the scourge of illegal money lending, which is responsible for so much harm and despair. Breaking the silence around this issue is essential to protecting our communities and helping those affected.

We want to open up the conversation about illegal lending and loan sharks, helping people realise that they are not alone and empowering them to talk about their situation openly and honestly, without embarrassment or stigma.

If you think a client might be involved with a loan shark, there are some warning signs to look out for. A loan without any paperwork and an extortionate rate of repayment are usually obvious signs. Watch out for sudden changes in their behaviour, or evidence that they are handing over personal items such as their bank card, passport or jewellery to someone they owe money to.

If you suspect illegal money lending in your community, you can report it to our team and we will investigate. Call our Stop Loan Sharks 24 Hour Helpline on 0300 555 2222 or use our confidential live chat service, available 9am – 5pm, Monday to Friday at www.stoploansharks.co.uk.