Loan Sharks in the UK – How to Identify Illegal Lenders and Report Them Safely

Who Are Today's Loan Sharks?

Many illegal money lenders are well known within their communities and are often introduced to borrowers through friends or family members. This is a critical point: loan sharks do not always look like strangers in dark alleys. They can be neighbours, acquaintances, or people you see at community events.

They are unregulated and give loans with no paperwork, often adding extortionate interest rates. When repayments are missed, they resort to threats, intimidation, and sometimes violence.

The 7 Warning Signs of an Illegal Lender

Based on guidance from the England Illegal Money Lending Team, here are the definitive warning signs:

1. No paperwork or written agreement – A legitimate lender must give you a written contract. If there is nothing to sign and no copy to keep, it is illegal.
2. Refusal to give you information about the loan – Legitimate lenders must tell you the interest rate, total repayment amount, and repayment schedule. If they cannot or will not provide this information, walk away.
3. Keeping your personal items until the debt is paid – Some loan sharks take bank cards, passports, or other valuables as "security." This is illegal.
4. Taking things from you if you don't pay on time – Legitimate lenders cannot take your property without a court order.
5. Adding more interest or charges so the debt never goes down – If your payments are not reducing what you owe, you are dealing with a predator.
6. Using intimidation or violence – This is the clearest sign. Legitimate lenders do not threaten you.
7. Operating without FCA authorisation – Check the register. If they are not on it, they are illegal.

Complete Reporting Guide: How to Report Safely

Method 1: Phone (Most Direct)

Call the 24/7 Stop Loan Sharks Helpline: 0300 555 2222. This is confidential. You do not have to give your name. The team is trained to handle these reports with sensitivity.

Method 2: WhatsApp (Discreet Text-Based Option)

Send a message to 07700 102773. The service is available Monday to Friday, 9am to 5pm. Your screen will not show the Stop Loan Sharks logo – it is designed to be discreet. You can send pictures of threatening messages or other evidence.

Method 3: Live Chat

Visit www.stoploansharks.co.uk and use the Live Chat feature. Available Monday to Friday, 9am to 5pm.

Method 4: Text Message

Send a text to 07860 022116. This number is monitored 24 hours a day.

Method 5: Online Contact Form

Through the Stop Loan Sharks website, you can submit a secure contact form at any time.

Method 6: In an Emergency

If you are in immediate danger or violence is occurring, call 999.

What Information Should You Provide?

To help the IMLT investigate effectively, provide as much of the following as you feel comfortable sharing:

• The lender's name and any nicknames they use
• Their phone number(s) – mobile and landline
• Where they operate (neighbourhood, street, specific locations)
• How much you borrowed and what you have paid so far
• Any threats, violence, or intimidation you have experienced
• The names of any other people you know who have borrowed from the same lender

You do not need to give your own name. The IMLT can investigate anonymously.

What Happens After You Report?

The IMLT investigates illegal money lending and supports borrowers. They have secured over 430 prosecutions and over 612 years in jail sentences. If the evidence supports prosecution, the case may go to court. If you are a victim, the IMLT will support you throughout the process – including helping with the financial and emotional impacts of the illegal lending.

Over £91.6 million of illegal debt has been written off through their work