Beware of Loan Sharks and Illegal Money Lending
Winter months, with their increased heating costs and seasonal expenses, can put a strain on household finances. When money is tight, it can be tempting to seek quick solutions, but borrowing from an illegal lender – commonly known as a loan shark – can lead to serious financial and personal consequences.
West Berkshire Council is holding a public meeting on Monday 3rd March 2025, 6:00pm – 7:30pm at West Berkshire Council Office, Market Street, Newbury, RG14 5LD, No booking is required. Refreshments will be served from 6:00pm with a presentation starting approx. 6:30pm. Please visit the Public Protection Partnership website for further information: www.publicprotectionpartnership.org.uk
We recognise that the meeting ends at a time when it is not possible to return to Lambourn by public transport so we have assembled some thoughts about loan sharks for you to consider:
Loan sharks operate outside the law and lend money without the necessary authorisation. They often seem friendly and helpful at first, offering loans without paperwork or credit checks, but their true nature soon becomes apparent. The interest rates they charge are extortionate, and repayments can quickly spiral out of control. Many resort to threats, intimidation, and even violence to ensure payment, trapping borrowers in a cycle of fear and debt.
It is important to recognise the warning signs of an illegal loan. A lender who does not provide clear loan agreements or receipts, demands high-interest repayments in cash, or takes personal belongings such as bank cards or passports as security is almost certainly operating illegally. Loan sharks often pressure borrowers into taking further loans and use coercive tactics to keep them under their control. They rarely advertise openly and are usually introduced by word of mouth within communities.
To avoid falling victim to illegal lending, always borrow from reputable and regulated sources. In the UK, lenders must be authorised by the Financial Conduct Authority (FCA), and it is always worth checking their credentials before taking out a loan. Alternatives such as credit unions, community banks, and government-backed support schemes provide safer and more affordable borrowing options. If you are struggling with debt, organisations such as Citizens Advice, StepChange, and National Debtline offer free and confidential support.
For those who have already borrowed from a loan shark, it is crucial to seek help as soon as possible. Do not feel pressured into making further payments, as these loans are not legally enforceable. Instead, gather any evidence of the loan, such as text messages or payment records, and contact the Illegal Money Lending Team (IMLT) in confidence. They can provide support, take action against the lender, and ensure that victims are not left to face the situation alone. If a loan shark has made threats or used intimidation, the police should be informed immediately.
No one should have to suffer in silence. There is support available, and help can be found for those affected by illegal lending. By raising awareness of the dangers of loan sharks and encouraging those in financial difficulty to seek safe alternatives, communities can work together to protect the most vulnerable from exploitation.
The Lambourn Junction
By the Community – for the Community
