Loan Sharks - Illegal money lenders in the community

What is a Loan Shark

Loan Sharks are unlicensed moneylenders operating outside the law and without any financial regulation, they are lending money without a credit licence from the Office of Fair Trading. The best advice for dealing with loan sharks is 'don't'. They usually charge very high interest rates and sometimes use threats and violence to frighten people who can't repay. They may also take your benefit entitlement or other valuable items as security, and may offer more and more loans leading to debt which you could never repay, and which there seems to be no way out of.

[back to top]

Am I dealing with a Loan Shark?

Appearances can be deceptive, because loan sharks may often first come across as a helpful community service, even a friendly lifeline, to those with poor credit ratings and money worries. But legal moneylenders have to be licensed by the Office of Fair Trading (OFT) and must follow strict procedures and regulations enforced by Trading Standards. If you have any doubt about the legality of a money-lending offer, call the Consumer Credit Public Register on 020 7211 8608 between 9.30am and 4pm on any weekday. If a lender isn't listed as having a current licence, don't borrow money from them.
 

[back to top]

Are there Loan Sharks in Bristol?

There certainly are! Appearances can be deceptive, because loan sharks may often first come across as a helpful community service, even a friendly lifeline, to those with poor credit ratings and money worries. But legal moneylenders have to be licensed by the Office of Fair Trading (OFT) and must follow strict procedures and regulations enforced by Trading Standards. If you have any doubt about the legality of a money-lending offer, call the Consumer Credit Public Register on 020 7211 8608 between 9.30am and 4pm on any weekday. If a lender isn't listed as having a current licence, don't borrow money from them.

[back to top]

I think I have already borrowed from a Loan Shark

If you have borrowed money from an illegal source you are under NO legal obligation to repay the debt, and if a lender is not licensed by the OFT they have NO legal right to recover the debt.

You should contact our Illegal Money Lending Team on 0300 1234 247,

or call Consumer Direct South West on 08454 040506, who will offer advice and pass on the details to the IMLT.

They will help you deal with your situation and with the illegal money lender.

Loan sharks sometimes frighten people by saying they'll be prosecuted and even sent to prison if they don't pay up. This cannot happen – failure to repay a loan from an unlicensed lender is not a criminal offence.

[back to top]

But I am being threatened!

Any lender - licensed or unlicensed - who threatens or harasses you is breaking the law. You should report any such activity relating to money lending to the IMLT on 0300 1234 247 or call Consumer Direct South West on 08454 040506, and call the Police if the loan shark threatens you or uses violence.

[back to top]

Where can I borrow money legally?

If you need a loan, always go to a licensed lender. There are reputable lenders who will consider your situation even if your income is low, your credit rating is poor, you have no security, or you need only a small amount for a short while. You may still have to pay a high rate of interest but the Consumer Credit Act will safeguard your loan agreement.

Always shop around for credit though - just because a lender is licensed it doesn't necessarily mean you are getting the best available deal.

If you're on a low income and you need to borrow a small amount for a short time, look into borrowing from a credit union. Credit unions are 'mutual' organisations, which exist to help local people save and borrow at affordable rates.

Your local Benefits Office (Department for Work and Pensions) is also empowered to make emergency payments if your personal circumstances require it.

[back to top]

I need help please! (or just advice)

Many organisations offer free and confidential help on money matters. Always seek this sort of free, independent advice before you pay for a commercial service.For free debt advice or for how to access legal affordable credit contact:
 

Bristol Citizen's Advice Bureau – 0844 499 4718   www.citizensadvice.org.uk

Bristol Debt Advice Centre - 0117 954 3990 or drop-in Tuesday and Thursday mornings at 48-54 West Street, Bristol

Bristol Credit Union – 0117 924 7309 or drop in Monday, Tuesday, Wednesday, Friday 10am to 2.30pm at 112 Cheltenham Road, Stokes Croft, Bristol, BS2 5RW or just click here

Severn Four Credit Union 0117 938 1439 or visit St Mary Church Hall, Shirehampton 10-30 to 11-30 on Fridays

National Debt line - offers free, confidential and independent help over the phone. Their helpline on 0808 8084 000 is manned 9.00 am and 9.00 pm on weekdays and 9.30 am to 1.00 pm on Saturdays (and you can leave a voicemail message at other times).

Consumer Credit Counselling Service (CCCS) – a helpline providing free and impartial advice to people with debt problems on 0800 1381 111 from 8.00 am to 8.00 pm on weekdays.

[back to top]

I think I know where a Loan Shark is operating - I want to report them

You can call the South West Illegal Money Lending Team – 0300 1234 247 Our new local 24 hour / 365 day helpline for victims or those with information about loan sharks.

The National "STOP LOAN SHARKS" campaign pages have useful information click here

You call also email the team at stoploansharks@bristol.gov.uk

You can also call Consumer Direct South West on 08454 040506 who will pass the information on to the Loan Shark Team and to your local Trading Standards service.

BUT IF YOU FEEL THREATENED OR IN DANGER DO NOT HESITATE TO CALL THE
POLICE

[back to top]