Borrowing money from illegal lenders, known as loan sharks, is becoming increasingly common, particularly as the cost of living crisis stretched household budgets over the previous couple of years.
Whilst borrowing money in this way may provide a short-term solution to financial problems, the extortionate interest charged to these loans can mean victims become trapped in a cycle of needing to borrow more and more money, which is taken advantage of by loan sharks.
Vulnerable people are particularly at risk of being exploited by loan sharks, and may not be aware they are in contact with illegal lenders.
Find out more about loan sharks and how to spot them in the video below. You can also get more information on the Stop Loan Sharks website.
What should you do if you have borrowed money from an illegal lender?
- Double check if the lender is FCA authorised by checking the online register.
- Call the Illegal Money Lending Hotline on 0300 555 2222, or report online. You can also contact them using reportaloanshark@stoploansharks.gov.uk or by texting ‘loan shark’ to 60003.
Where can you get financial support if you are struggling?
There is a range of support available for households under financial pressure. On the cost of living section of our website, you can find information about the help we can provide, as well as from the government and other charities and organisations.
We work closely with Westcountry Savings and Loans, a credit union who offer a range of responsible and ethical loans, as well as offering saving products information, education and support, which you can access as a LiveWest customer.
Turn2us also offer a range of grants and help which you can make use of. The British Gas Energy Trust is also available if you are struggling to pay your bills, and can be accessed by anyone regardless of energy provider.