Stop Loan Sharks

Age is no barrier to Loan Sharks

Guest blog: Wendy Loades, Liaise Officer (South West), Stand alone Project of Trading Standards

When 91-year-old Joe asked his local credit union for a loan to ‘pay his mate back’ alarm bells started ringing for staff. Why was someone in Joe’s position being pressured to pay back money? Who exactly was the friend that had lent him cash? Staff asked the right questions and pointed Joe in the direction of Stop Loan Sharks, for the England Illegal Money Lending Team.

The specialist staff there quickly established that Joe had borrowed from someone who was not legally authorised to do so by the Financial Conduct Authority – a loan shark. Joe revealed that he knew the loan shark and had classed him as a friend. He had been borrowing money from this ‘friend’ since 2013 and his debt had grown to over £6,000. The loan shark was demanding repayments of £600 a month and Joe had simply run out of money and needed to borrow elsewhere to pay. This is just one example of the hundreds of cases Stop Loan Sharks deal with every year.

Many think a loan shark is an intimidating gangster-type, usually male and between 20 and 40 years in age. Borrowers are often depicted as young, out of work, maybe a single parent. But in the vast majority of cases that image could not be further from the truth. In 2022, 22 per cent of those supported by Stop Loan Sharks were over 55. Joe was the oldest borrower at 91.

Loan sharks come from all sections of society and from all age groups. They prey on people wherever they are vulnerable and pretend to be friendly, offering a favour of lending some-much-needed cash. They can also be older people - recently two illegal lenders from London were ordered to pay £1.2 million in a Proceeds of Crime confiscation hearing. They are both women, aged 67 and 71. A man who was prosecuted in Bristol was aged 78 and the Stop Loan Sharks Wales Team recently had a case involving an 83-year-old woman, dubbed Britain’s oldest loan shark.

So why do people borrow from loan sharks?

The reasons are many and varied. In Joe’s case, he had started off borrowing small amounts for items he needed. But once loan sharks have a grip on someone they do whatever they can to make sure they keep that hold.

The Stop Loan Sharks Team is made up of two sections - ‘Investigators’ who look into reports of loan sharks and gather evidence to support a prosecution and ‘Liaise Officers’ who work with borrowers like Joe to support them through the journey back to financial freedom.

Watch out for the warning signs of an illegal lender which may include:

• Giving you no paperwork or agreement on a loan 
• Refusing to give you information about the loan 
• Keeping items until the debt is paid such as your bank card or passport
• Taking things from you if you do not pay on time 
• Adding more interest or charges so the debt never goes down
• Using intimidation or violence if you do not pay.

Anyone who thinks they may have been affected by illegal money lending can call the Stop Loan Sharks 24/7 Helpline on 0300 555 2222 or access support at www.stoploansharks.co.uk. Live Chat is available on the website from 9am to 5pm, Monday to Friday.