Loan sharks are particularly prevalent, searching for vulnerable people to take advantage of at a time where money is tight. We want to help you to know how to spot a loan shark, so that you don’t get caught out.
Firstly, if someone you don’t know very well offers you money, do NOT accept it. It may seem harmless, but they could end up charging you a large amount of interest or become threatening and aggressive if you’re not quick enough to repay the money. Loan sharks approach victims online and in real life. They project themselves as friends helping you out but once you have accepted the loan, their behaviour changes and becomes intimidating. Read Becky’s story of how a loan of £50 led to her paying a loan shark £35,000.
Be wary of anyone who is willing to lend you money without providing any paperwork. This is a huge red flag! Any reputable lender will have a contract with clearly explained interest rates and fees. You can check if they’re a registered lender on the FCA website here.
Remember, you aren’t breaking the law borrowing from a loan shark – they are the ones breaking the law by lending money and charging interest when they are not a regulated lender. For advice, support, or to report a loan shark in confidence, visit the Stop Loan Sharks website here.
There are always other options to borrowing from an illegal money lender. Credit Unions, like Wave Community Bank, often lend to people that banks won’t. So, try out your local community bank for a fair and ethical loan! You can apply for a loan with us here.
