What to Do If You Are Being Harassed by a Loan App in the UK (Your Legal Rights Explained)

Illegal lending is not a small problem in the UK. According to the Centre for Social Justice, up to 1.08 million people are currently in debt to loan sharks in England alone. Many of these illegal lenders now operate through mobile apps and social media.

The England Illegal Money Lending Team (IMLT) has supported over 32,500 people, written off over £91.6 million of illegal debt, and secured over 430 prosecutions leading to over 612 years in jail.

Your Legal Rights When Being Harassed

Right 1: Loan sharks cannot legally demand payment

If the lender is not FCA-authorised, they have no legal right to collect the debt. Their threats are empty. You do not owe them money under UK law.

Right 2: Harassment is a criminal offence

Under the Protection from Harassment Act 1997, repeated unwanted contact – including phone calls, texts, WhatsApp messages, and visits – can be prosecuted as criminal harassment.

Right 3: Intimidation and violence are serious crimes

If a loan shark threatens you, your family, or your property, this is a matter for the police. Do not wait. Contact law enforcement immediately.

Right 4: Data protection laws apply

If the loan app has accessed your contacts or personal data without proper consent, they may be violating the Data Protection Act 2018 and UK GDPR.

Step-by-Step: How to Stop the Harassment

Step 1: Do Not Engage

Do not argue with the harasser. Do not make promises you cannot keep. Do not send more money. Engaging only encourages further contact.

Step 2: Document Everything

Keep a log of:

• Every phone call (date, time, duration, caller ID if available)
• Every text message (screenshot and save)
• Every WhatsApp message (screenshot and save – consider using screen recording)
• Any voicemails (save them)

Step 3: Block the Numbers

Block the numbers being used to contact you. On most phones:

• iPhone: Tap the number, scroll down, tap "Block this Caller"
• Android: Tap the number, tap "Block/Report Spam"

Step 4: Report to Stop Loan Sharks

The IMLT offers multiple confidential reporting channels

• 24/7 Helpline: 0300 555 2222
• WhatsApp: 07700 102773
• Live Chat: www.stoploansharks.co.uk
• Text message: 07860 022116
• Email Via website contact form

The WhatsApp service is discreet – the Stop Loan Sharks logo will not be visible on your screen. You can send pictures of threatening messages, stop a conversation at any time, and return to it when you are ready.

Step 5: Contact the Police

If threats involve violence, forced entry, or immediate danger, call 999. For non-emergency reporting of loan shark activity, call 101.

Step 6: Seek Support from Citizens Advice

Citizens Advice can help you understand your rights, access debt advice, and navigate support services. In 2025 alone, Citizens Advice Sandwell & Walsall helped over 18,000 residents – a record-breaking number.

Important: Do Not Pay the Loan Shark

Once you have confirmed the lender is illegal, stop paying them. Every payment you make to an illegal lender is money that could have gone to legitimate bills, food, or housing.

The IMLT can support you in dealing with any threats that arise from stopping payments. This is their core function – they are there to help, not to judge.