With price increases on everything from fuel to food making it increasingly tough for households, unlicensed lenders are taking advantage of people who are struggling to make ends meet. 

Unlicensed lenders also known as loan sharks, are illegal moneylenders who often charge very high interest rates. You can check if a company is authorised to lend money and report loan sharks anonymously.

Sometimes spotting a loan shark can be difficult BUT it's worth knowing what signs to look for because the effect that loan sharks can have on ordinary people's lives can be massive. 

Debts of a few hundred pounds can quickly spiral into thousands when lenders apply excessive interest.

A Loan Shark:

• Does not provide paperwork
• Refuses to tell you the interest rates or how much you still owe
• Increases the amount you owe even if you are making regular payments
• Takes items as 'security'. Even passports, bank cards, or driving licences
• Is intimidating or violent

Reporting a loan shark

If you have been approached by someone you think is a loan shark, you need to report them and contact the police if you are in immediate danger.

For safe, confidential help or to report a loan shark, call the Illegal Money Lending Team on 0300 555 2222 (24hr) or visit www.stoploansharks.co.uk to make a report.

Check if a lender is registered

You can search the Financial Services Register for companies and individuals authorised by the Financial Conduct Authority (FCA).

Alternatives to loan sharks

If your income is low, you have a poor credit rating or you only need a small amount for a short while, there are reputable lenders you can turn to instead of loan sharks.

Credit unions

Look into borrowing from a credit union - although you will have to become a member and they might ask you to save an amount before you can borrow. Visit Halton Credit Union to find out more.

Dealing with debt

If you’re thinking about using a loan shark because you can’t borrow money anywhere else, there are a number of organisations which offer free debt advice.