Loan sharks: Why you should steer clear – and what to do if you’re caught up

When times are tough and money’s tight, it can be tempting to turn to whoever’s offering quick cash – no matter the source. But if someone offers you a loan and it doesn’t feel quite right, trust your gut. You could be dealing with a loan shark.

Loan sharks are illegal money lenders – and they often prey on people who are already struggling financially. Their offers might seem friendly or helpful at first, but the reality is far more dangerous.

Why loan sharks are so harmful

Loan sharks don’t follow the rules. They aren’t regulated, they don’t give clear terms and their loans often come with a nasty catch. Here are some of the red flags:

  • No paperwork. If there's no official agreement, that's a warning sign
  • Cash-only deals. Many avoid bank transfers to stay under the radar
  • No info about the loan. They won’t tell you what you owe or what the interest is
  • Taking valuables as ‘security’. Some even ask for your passport or bank card
  • Unfair charges. Your debt might suddenly grow, even if you’ve been paying regularly
  • Threats and intimidation. Loan sharks often scare people into paying – sometimes using violence.

Been approached or already borrowed from a loan shark?

You're not alone – and importantly, you haven’t broken the law. The loan itself is illegal, and you don’t have to pay it back. Help is available, and it’s 100% confidential.

If you feel unsafe or threatened, call the police on 999.

Otherwise, contact the Stop Loan Sharks team on 0300 555 2222.

You can report anonymously and get support to help you safely leave the situation.

Be cautious online

Did you know that some payday lenders pay to appear in search results when people look for "loan shark help"? It’s easy to click on something that looks trustworthy, only to end up with another high-interest loan. Be careful where you click.

Where to get free, trusted advice

If you're in financial difficulty, there are free services that can help you sort things out without risk:

Let’s help protect our communities by spreading the word. If someone you know is in a tough spot financially, encourage them to speak to a trusted organisation, not a lender operating in the shadows. There is always a better, safer way forward.

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