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Illegal Money Lending (Loan Sharks)

Stop Loan SharksA loan shark is an unlicensed money lender. They are not regulated by the Office for Fair Trading, do not follow their code of practice and they operate outside of the law.

Borrowing from an illegal money lender may mean that you:

  • get a loan on very bad terms
  • pay an extortionate rate of interest (rates as high as 131,000 per cent APR have been recorded)
  • will be harassed if you get behind with your repayments
  • are pressured into borrowing more from them to repay one debt with another

Cestria Community Housing is a ‘Stop Loan Sharks’ campaign partner and is working with the Illegal Money Lending Team to stamp out loan shark activity in Chester-le-Street.

The Illegal Money Lending Team are a national organisation, supported by the Government and the Office of Fair Trading. They provide support to victims of loan sharks, and help bring a case to prosecute perpetrators of illegal money lending.

Remember, you are not breaking the law by borrowing from an illegal money lender, they are breaking the law by lending the money TO you!

Reporting a loan shark (in confidence) could not be simpler:

If you would like any more information on how to deal with a loan shark, please visit the Illegal Money Lending Team website here.