Lincolnshire Credit Union Blog

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Loan Shark Awareness Week #StopLoanSharksXmas

Date added - 19 Dec 2019

It’s Loan shark awareness week. It’s that time of the year where money can be tight, and some people turn to anyone for a loan. When banks are too much or declining loans some people turn unknowingly to borrowing from a loan shark. A loan shark is someone who lends money without the correct permission granted by the Financial Conduct Authority, this means that they don’t follow rules when it comes to repayment, most people only take loans of a few hundred pounds but end up having to pay back over a thousand.

Loan Sharks cause misery to people in financial difficulties and everyone around them. Some may be harder to spot than others but always be on the lookout for these signs:
• They will provide little or no paperwork, such as a license, credit agreement or record of payments.
• They might offer the loan to you in cash.
• It’s likely they will increase the debt or add additional amounts to it without your permission.
• Many will refuse to give information, such as interest rate or how much you still owe.
• You can expect them to want items for security, such as passports, bank cards or driving licences.
• They will not allow you to settle your debt
• In an attempt to get their money from you they will get nasty – they may resort to intimidation, threats or violence.

Loan with someone you can trust, most banks don’t do small loans and are very less willing due to peoples circumstances, instead of turning to a possible loan shark find your local credit union instead. The credit union is an ethics non-profit that specialise in small affordable loans. By going through a trusted organisation there is no risk of endless payments, unreliable records, secrecy, threats or violence.

To report a loan shark you can contact the Illegal Money Lending Team via their email: reportaloanshark@stoploansharks.gov.uk or phone the 24/7 phone service on 03005 552222.