Say No to Loan Sharks – help is available

With household budgets continuing to feel the pressure, many people are finding it harder to make ends meet. When money is tight, it can be tempting to accept a loan from someone who offers quick cash with few questions asked. However, what may seem like a simple solution can quickly become a much bigger problem.

What is a loan shark?
 
A loan shark is an illegal money lender who is not authorised by the Financial Conduct Authority (FCA). Unlike legitimate lenders, loan sharks operate outside the law and often target people who are struggling financially.
 
They may appear friendly and helpful at first – perhaps a neighbour, someone known through friends or family, or even a familiar face in the community. They often promise quick cash with no credit checks or paperwork, making their offer seem like an easy option when money is tight.
 
Unfortunately, this is where the problems often begin.
 
The dangers of borrowing from a loan shark

Loan sharks frequently charge excessive interest and add unexpected fees, making it almost impossible for borrowers to clear their debt. In many cases, repayments can spiral far beyond the amount originally borrowed.
 
Some illegal lenders also use intimidation, threats or harassment to force people to repay them. They may take personal belongings such as bank cards, passports or valuables as security, leaving borrowers feeling trapped and frightened.
 
If you have borrowed from a loan shark, it’s important to remember that you are not the one breaking the law. The criminal is the person lending the money illegally.
 
Could you be dealing with a loan shark?

You may have borrowed from a loan shark if you can answer yes to any of the following:
 
– You were offered cash quickly with little or no paperwork.
– There was no written loan agreement.
– You’re not sure how much you owe or when the loan will end.
– The amount you’re expected to repay keeps increasing.
– Your bank card, passport, phone or other valuables have been taken as security.
– You have been threatened, pressured or made to feel frightened about repayments.
– You feel worried about telling anyone about the loan.

Help is available
 
No one should have to face a loan shark alone. The Government-funded Stop Loan Sharks team investigates and prosecutes illegal money lenders across England while providing free, confidential support to anyone affected.
 
Whether you’ve borrowed money yourself or you’re concerned about a friend, neighbour or family member, support is available without judgement.
 
You can contact Stop Loan Sharks:
 
– 24-hour confidential helpline: 0300 555 2222
– WhatsApp (9am–8pm, Monday to Friday): 07700 102773
– Visit www.stoploansharks.co.uk for advice, live chat and more ways to get in touch.

If you’re worried about money

If you’re struggling with the rising cost of living, please remember there may be safer options available. Speak to an 0800 Repair or PHS colleague as soon as possible as we may be able to help or signpost you to free, independent debt and money advice before your situation becomes more difficult.
 
Reaching out for help could make all the difference. Whatever your circumstances, you don’t have to face financial worries on your own.