Loan sharks are expert manipulators. Their talent lies in persuading people that they are a reliable source of credit initially and then keeping them ensnared in an unending cycle of debt. These predatory lenders often masquerade as friends, offering timely financial aid just when it’s needed the most. However, instead of providing relief, they plunge borrowers deeper into debt, creating a sense of entrapment with no apparent escape.
In 2023, Stop Loan Sharks assisted nearly 800 individuals who had borrowed from these unscrupulous lenders, helping them break free from their grip. Alarmingly, 17 percent of these borrowers had taken out loans more than ten times, and 14 percent couldn’t even recall how many times they had borrowed. This statistic highlights how easily people can become ensnared in a vicious cycle of borrowing to repay escalating debts. The debt keeps mounting, and the end seems perpetually out of reach.
It’s striking to note that it often takes borrowers over two years to report a loan shark. Why such a delay? The manipulative tactics of loan sharks extend well beyond the initial loan agreement. To maintain control, these lenders resort to a range of methods—sometimes violence or threats thereof, but more often through intimidation and the fear of exposure and shame. Borrowers are made to feel culpable, dreading the potential disgrace if their family or friends find out. But let’s be clear: borrowers are not to blame. They are victims, targeted and exploited by criminals who should bear all the shame and blame.
In the past year, 81 percent of those supported by Stop Loan Sharks were in a state of extreme stress, worry, or depression due to their involvement with these illegal lenders. Recognizing this, Stop Loan Sharks has a dedicated team of specialist officers equipped with the tools and experience to help victims escape these predatory clutches and begin their journey back to financial stability. They offer support without judgment.
This year marks the 20th anniversary of Stop Loan Sharks. Over the past two decades, they have supported over 31,500 people, written off more than £91.2 million in illegal debt, and secured 416 prosecutions for illegal money lending, resulting in 598 years of jail time.
A loan shark, or illegal money lender, operates without authorization from the Financial Conduct Authority and disregards rules designed to protect borrowers. Here are some tell-tale signs of an illegal lender:
- No paperwork or loan details provided
- Repayments demanded far exceeding the initial loan amount
- Intimidation or threats if repayments are missed
- Demands for personal items like bank cards or passports as security
If you need to borrow money, consider alternatives like credit unions, which offer safe and regulated lending options. You can find your nearest credit union at findyourcreditunion.co.uk
If you believe you’ve been targeted by a loan shark, reach out to Stop Loan Sharks via their 24/7 confidential hotline at 0300 555 2222 or use the live chat available on their website stoploansharks.co.uk from Monday to Friday, 9am to 5pm.
Breaking free from a loan shark’s grip is challenging, but with the right support, it’s possible. Remember, seeking help is a sign of strength, not weakness.
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Peter Lamb for Crawley 