If you’re being harassed Any lender, licensed or unlicensed, who harasses you is breaking the law. You should report any loan shark to your local your local Trading Standards office and to the police if the loan shark threatens you or uses violence.
What happens when you don’t pay a loan shark?
Is it a crime not to repay a loan shark? Loan sharks sometimes frighten people by saying they’ll be prosecuted and even sent to prison if they don’t pay up. This can’t happen – not repaying a loan from an unlicensed lender isn’t a criminal offence.
Is it illegal to get money from a loan shark?
They will lend large sums of money with the intention of gaining high levels of interest in a short time. Loans from loan sharks charge interest rates far above any regulated rate. In most cases business dealings with a loan shark are illegal; it is best to seek other alternatives.
What to do if you owe money to a loan shark?
Loan shark debt. What to do if you owe money to an illegal lender. It’s a criminal offence to lend money for profit without a consumer credit licence. A company or person who engages in unlicensed lending is typically known as a loan shark.
How to report a loan shark in Wales?
In Wales, you can report concerns about a money lender to the Wales Illegal Money Lending Unit which operates a 24 hour confidential helpline on: 0300 123 33 11. In Northern Ireland you can contact the Trading Standards Consumerline, telephone 0300 123 6262. The advisers can give you advice about your situation.
How does a contract with a loan shark work?
The contract, however, gives the loan shark an advantage in that it makes the loan appear official and legitimate, even if the terms are illegal. If a loan shark doesn’t use paperwork at all, then there is little proof of what you really owe.
Do you have to be authorised to be a loan shark?
What is a loan shark. A money lender has to be authorised by the Financial Conduct Authority (FCA) to lend money legally. Money lenders who aren’t authorised by the FCA are breaking the law. They are known as loan sharks.
