Loansharks circling in COVID-19 crisis

Loan sharks are criminals and unfortunately many are swimming around looking for vulnerable people to exploit during the covid crisis.

It’s easy to fall into the grip of a loan shark as they seem friendly at first, but you’ll end up paying back significantly more with extortionate interest rates. And their friendly behaviour can soon turn into threats, intimidation and even violence.

Illegal loan sharks often don’t give you much (if any) paperwork to confirm the arrangements so you won’t know how much interest you’re being charged or the total amount you’ll have to pay back.

As well as charging exorbitant interest rates, loan sharks often take illegal action to collect the money they have lent you. This can include making threats to take away your credit cards and valuables or even physically hurting you. If a loan shark threatens you or acts in a violent way, contact the police straight away and report them to the Illegal Money Lending Team.

If you want to check if a money lender is legal you can look at the online register to see if that person is authorised by the Financial Conduct Authority (FCA). If not authorised by the FCA, they are breaking the law.

If you’ve borrowed money from a loanshark and need help and advice, contact the Illegal Money Lending Team by email or calling 0300 555 2222.

For free, impartial help and support with debt and budgeting please contact our Welfare Rights and Money Advice Team. We can help you manage your money and work out a way forward without the need to borrow from a loan shark.