Guaranteed Loan Sharks – illegal money lenders known as loan sharks prey upon those in desperate need of cash by charging high interest rates and intimidating borrowers with threats of violence as well as taking away credit cards and valuables.
Only licensed lenders in the UK may legally lend money and anyone failing to meet these standards is breaking the law.
Guaranteed Loan Sharks charge high interest rates
If you find yourself experiencing financial difficulty, it’s essential that you seek debt advice as soon as possible. A legally authorised lender can offer preferential rates and help manage your debt more effectively. Additionally it may be wise to check whether any lenders under consideration are regulated by the Financial Conduct Authority, otherwise contact either your local police station or consumer protection agency for guidance, if needed.
Loan sharks typically charge high interest rates and demand collateral such as your car or house as security, without conducting credit checks. Furthermore, these lenders usually force you to borrow more money just so they can collect on previous debts.
Councils are warning people in precarious financial circumstances about loan sharks who charge sky-high interest rates and use intimidation and violence to collect repayments from customers. A recent operation by England Illegal Money Lending Team discovered a loan shark charging 1,400% interest and operating successfully.
They don’t provide you with any paperwork
Due to high interest rates and limited bank options, it may be tempting to turn to loan sharks as an alternative financial source. Unfortunately, loan sharks are illegal and typically prey upon people who are vulnerable or desperate. Loan sharks charge exorbitant interest rates and may even use violent means to recover their money back. Furthermore, loan sharks don’t provide paperwork and may demand important possessions such as cars or houses as collateral against repayment.
Loan sharks typically operate by word-of-mouth and approach people in local pubs, cafes or parks to make loans; they may also be found online and via apps, this form of lending does not adhere to industry standards and regulation.
Estimates suggest that more than a million people in England are borrowing illegal money lenders and this number could actually be much higher as many cases go unreported. It’s important to keep in mind there are legal alternatives such as credit unions or specialist bad credit loans which offer legal borrowing options.
Loan sharks are illegal money lenders who operate illegally by lending illegally and at high interest rates, charging very high interest rates without providing paperwork and often intimidating people in order to collect their debt by threats, violence and taking away valuables or guaranteed credit cards. Any incidents of illegal money lending must be reported immediately to Trading Standards or Citizens Advice consumer services as soon as they occur, as well as to Illegal Money Lending Teams created by the government to investigate and prosecute loan sharks.
Due to rising living expenses, more people are turning to loan sharks for help with extra funds for energy bills or mortgage repayment. Unfortunately, loan sharks take advantage of vulnerable individuals by advertising misleadingly and harassing their victims via telephone or social media ,in order to protect yourself, ensure any lender you borrow money from has been approved by the Financial Conduct Authority before borrowing any funds from them. To stay safe and avoid becoming another statistic of cost of living crisis, so make sure your lender is licensed by FCA before borrowing money.
They intimidate you
Loan sharks are unlicensed money lenders who intimidate people into borrowing by promising legal prosecution or jail time if they do not repay on time. Furthermore, loan sharks may try to encourage people to take out more loans so they can increase their interest earnings and profits.
Loan sharks typically prey upon vulnerable communities and employ various tactics to lure in borrowers. Threats of violence and the seizure of personal property or housing could be used as leverage against them, while illegal activities such as drug dealing or human trafficking might also be pressured into being undertaken as repayment obligations.
Loan shark loans harassment is illegal. If this occurs to you, report them immediately to either your local Trading Standards office or police force, and if in England get support from the England Illegal Money Lending Team, both organisations offer advice to help get debt under control and restore credit ratings.