Loan sharks destroy lives. Technically any money lender operating without a licence – loan sharks target vulnerable individuals with offers of money, then charge unreasonable interest rates often backed up with threats of violence.

Victims of loan sharks have one major recourse – the law is on their side. The debt is not legal and does not have to be repaid. The Illegal Moneylending Units (IMLUs) operating in the UK are highly professional, friendly, and offer a level of care and support for victims that is in our experience industry-leading, often staying in touch with victims long after the loan shark has been convicted, and signposting them to other support agencies with efficiency and care.

Though it is not often openly discussed there is compensation available for victims of loan sharks, but the IMLUs are careful not to let that become an incentive to falsely report them.

IMLUs are divided into three at the moment – England, Scotland and Wales. In Northern Ireland cases are handled by Consumerline and the police. Their contact details can be found on their websites (right). It is always worth checking with them if you are suspicious that someone you know may be the victim of a loan shark. You can choose to remain anonymous when reporting a loan shark.
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SIGNS OF A LOAN SHARK OPERATING
It can be very hard to spot a loan shark. Often even their victims will still be thinking of them as a friend, as someone who helped them out when no one else would.
A loan shark might:

• Offer little or no paperwork, such as a credit agreement or record of payments
• Refuse to give information, such as the interest rate or how much is owed
• Take items as security, such as passports, bank cards or driving licences
• Increase the debt or add additional charges at any time
• Refuse to allow the lender to settle their debt
• Get nasty – they might resort to intimidation, threats or violence

You can check if a lender is licensed by calling the Consumer Credit Public Register on 020 7211 8608 to check.

Loan Shark Resources

• quidsinmagazine.com has a page dedicated to loansharks.
• Below is a series of three cartoon clips explaining loan sharks to primary school children produced by the Welsh Illegal Moneylending Unit

And here is a moving series of interviews with victims, more suitable for sharing with adults.