What is a loan shark?
Loan sharks will often pretend to be a friend offering a favour of cash just when you need it most. This is how they get people to borrow from them to begin with, and then they keep people trapped in a cycle of debt.
Borrowers find themselves plunged further and further into debt, and feel trapped with no way out. The amount they owe keeps rising and they never manage to repay the total.
In order to maintain control of the borrower, the loan shark can use a variety of tactics – sometimes violence, or threats of violence, but often it is intimidation and the fear that the borrower will be exposed and shamed. Loan sharks make borrowers feel as though they have done something wrong and become fearful of their family or friends finding out. In fact, they have done nothing wrong they have been targeted and exploited by a criminal – the loan shark – and it is the loan shark who should carry all the blame and shame, not the borrower.
The signs of an illegal lender include:
– Being given no paperwork or details about the loan
– Being told to make repayments that add up to much more than you initially borrowed
– Being intimidated or threatened you if you struggle to pay
– Being told to hand over items like bank cards or a passport until you can pay
Getting Help
It can sometimes take borrowers more than two years to finally report a loan shark because of extreme stress, worry or depression because of their involvement with the loan shark.
Friends, family, neighbours and community members can be a vital lifeline to those involved with loan sharks. If you are worried that someone you know may be a victim of illegal money lending, reassure them that Stop Loan Sharks and support services are still there to help and direct them to sources of support.
Stop Loan Sharks has a team of specialist officers who recognise this and have the tools and experience to help people in this position escape the clutches of the illegal lender and start the journey back to financial safety. They are there to help and will not judge.
If someone does need to borrow Credit unions offer a safe alternative to the mainstream banks and lenders.
You can report a loan shark anonymously or you can speak to a specialist member of the stop loan shark team in the strictest confidence.
If you think you have been targeted by a loan shark, you can contact Stop Loan Sharks by calling the 24/7 confidential hotline 0300 555 2222 or joining the live chat which is available on the website www.stoploansharks.co.uk from Monday to Friday 9am to 5pm. You can also email the team at reportaloanshark@stoploansharks.gov.uk or submit a report online at www.stoploansharks.co.uk.
For further information on the support available and how to get in touch, visit the website www.stoploansharks.co.uk
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