The lastest report on illegal money lending in the UK, commissioned by BERR (Department for Business Enterprise and Regulatory Reform), has indicated that people who have poor credit histories, are unable to access credit through the usual mainstream channels (eg. bank loans, credit cards etc), or who are among the most vulnerable sectors of society, such as single mothers or the disabled, are more likely to resort to illegal lenders as a means to finding funds.

Illegal lenders, or loan sharks as they're more commonly known, are unlicensed and, as BERR comments, operate outside the law. Many people who have resorted to borrowing from an illegal lender have reported feeling victimised and humiliated by the methods the loan shark has used to recoup their money. These methods may include harrassment, intimidation and, in some cases, violence, as this case study from the government website Now Let's Talk Money illustrates:

Maureen is a single parent on income support who lives in a housing association property. After Maureen borrowed from an illegal money lender the situation escalated into violence. She turned to her local Community Development Finance Institution (CDFI) and Citizens Advice Bureau (CAB) for help.
 
After borrowing from a known illegal money lender to purchase Christmas presents for her children, Maureen found herself in a distressing and dangerous situation. The lender held her bank card for security and approached her every week for repayment. The lender was violent towards Maureen while her children were present.
 
Maureen approached the CDFI, who have two full time CAB employees based in their office. She was reluctant to involve the police so she worked with the CAB, who involved the Local Housing Office and Social Work, to find temporary and then permanent accommodation for the family. Maureen had to leave in a hurry and left a lot of furniture and belongings behind. 

When the family were settled in their new home, the CDFI were able to help her with a loan for beds and a lounge suite. Susan McClelland, CDFI Senior Loan Officer, said, “Because of the recent instabilities in Maureen’s life, her application was not the strongest on paper. However, I felt that she was genuinely trying to sort her life out and needed someone to trust in her. I am happy to say that Maureen’s payment history with us has been faultless and I know that she is extremely appreciative of our faith in her”.

Maureen is now planning for the future and looking forward to getting a job.  She is happy and stress free and working to rebuild her relationship with her children. Robert Mackay, CAB Officer, said, “When Maureen first came to me she was demoralised and humiliated.  With our assistance and her courage she has completely transformed her life”.

Now Let's Talk Money,which provides advice and guidance on debt, affordable credit and information about banking, offers these guidelines for anyone who thinks they may have become involved with a loan shark:   

Have you been offered a cash loan?
 
Have you been threatened when you couldn't pay?
 
Has your benefit book or bank card been taken from you as a security?
 
Does what you owe keep growing even though you are making payments? 

If you can answer yes to any of the above then you may have been bitten by a loan shark. If you, or anyone you know, is experiencing any of the above or has knowledge of loan shark activities then contact your local Loan Shark team.

The government initiative, The Illegal Money Lending Project, has set up teams to support victims and also to provide legal enforcement against loan sharks. Illegal Money Lending teams are active in areas across the UK. Anyone worried about loan sharks, or experiencing difficulties with them, can contact these teams IN CONFIDENCE 24 hours a day, 7 days a week by phone, text or email.

Teams operate in:

West Midlands
Contact us - 24 hours a day, 7 days a week on 0121 693 1122
Or by email at stoploansharks@birmingham.gov.uk
Or by text to: loan(space)shark(space) + your message to 60003

East of England
Contact us - 24 hours a day, 7 days a week on 0121 693 1122
Or by email at stoploansharks@birmingham.gov.uk
Or by text to: loan(space)shark(space) + your message to 60003

Yorkshire and Humber
Contact us - 24 hours a day, 7 days a week on any of the following numbers 01274 82 1122
0114 201 1122
0113 225 1122
Or by email at stoploansharks@birmingham.gov.uk
Or by text to: loan(space)shark(space) + your message to 60003

South East
Contact us - 24 hours a day, 7 days a week on one of the following numbers Or by email at stoploansharks@birmingham.gov.uk
Or by text to: loan(space)shark(space) + your message to 60003

North West
Contact us - 24 hours a day, 7 days a week on one of the following numbers Or by email at stoploansharks@birmingham.gov.uk
Or by text to: loan(space)shark(space) + your message to 60003