It’s time to break the silence on illegal money lending.
A report published by the Centre for Social Justice estimated that 1.08 million people could be borrowing from an illegal money lender – more commonly known as a loan shark. This figure has more than trebled since 2010.
Loan sharks are criminals who lend money at extortionate rates of interest, threatening significant harm to borrowers if they do not pay. These ruthless lenders use coercive control and psychological threats to keep victims trapped in an endless cycle of debt for years, often with devastating consequences.
People who have borrowed from loan sharks often keep this information to themselves, but by asking a few simple questions, you could help someone feel supported enough to disclose their situation so they can get the help they need.
Tony Quigley, Head of the England Illegal Money Lending Team, said: “Loan sharks are mercilessly preying on the most vulnerable and using deceptive tactics to trap families in a cycle of debt and fear.
“We are working with our partners across England to bring awareness and information to all those affected by illegal lending – and encouraging frontline workers to spot the signs and ‘ask the question’ when dealing with vulnerable clients who may be at risk of being targeted by loan sharks.
“We want to open up the conversation about illegal lending and loan sharks, helping people realise that they are not alone and empowering them to talk about their situation openly and honestly, without embarrassment or stigma.”
New figures released by the IMLT show that over one-third (35%) of victims had sought debt advice but were reluctant to report the loan shark to their support worker due to fear of reprisals from the lender.
If you think a person might be involved with a loan shark, there are some warning signs to look out for. A loan without paperwork and an extortionate rate of repayment are usually obvious signs. Watch out for sudden changes in their behaviour, or evidence that they are handing over personal items such as their bank card, passport or jewellery to someone they owe money to.
How to support someone you’re worried about
If someone is struggling to deal with loan sharks and debt, they may feel isolated, vulnerable and ashamed. While it might feel awkward to talk about these issues, asking the right questions and encouraging the person to open up about their experience can help them take the first step in seeking help. It will also make them feel at ease and less alone.
It’s important to simply provide a space for that person to share their thoughts or talk through their experiences. This will make them feel safe and understood. As a friend, family member, colleague or support worker, you can make this happen by being there to listen without judgement.
If you’re having trouble getting someone to open up about their loan shark problem, here are some ways to start the conversation: “Have you ever been pressured into taking out a loan with high interest rates?”, “Are you paying back more than what you borrowed?”, “Has anyone acted aggressively towards you when you didn’t pay back a loan? If so, did they use any type of physical force or threats?”.
If you have been affected by loan sharks or have concerns about someone you know, confidential advice and support is available from the Illegal Money Lending Team. Call the Stop Loan Sharks 24 Hour Helpline on 0300 555 2222 or visit the website for more information at www.stoploansharks.co.uk. Live Chat is available on the website between 9am to 5pm, Monday to Friday.
