Warning as loan sharks trawl the web for victims

Around 300,000 households across the UK have been the victim of a loan shark since records began in 2014.

We're becoming used to spotting the signs of scammers and fraudsters, but we're being warned of a new online criminal benefitting from ill-gotten gains.

Loan sharks are reinventing themselves by moving off the streets and onto social media.

They're using online platforms to both lure potential victims and intimidate those who miss a payment. 

It is a world away from the stereotypical illegal money lender who hangs around housing estates making threats of violence.  

For those of you who might be unfamiliar, a loan shark is someone who lends money without authorisation from the Financial Conduct Authority (FCA).

They often tend to appear friendly and helpful, but quickly trap their victims into a vicious cycle of spiralling debts.  

Loan sharks have been known to use violent tactics including assault, blackmail and even kidnapping to pressure victims into repaying loans with extortionate interest fees.  

The nation's Illegal Money Lending Team (IMLT) which investigates and prosecutes illegal money lenders while supporting victims, is warning people to watch out for loan sharks online where they've become increasingly active. 

It's thought around 300,000 households across the UK have been the victim of a loan shark since records began in 2014.

One in ten of those met their lender on social media platforms like Facebook or Snapchat and even dating websites. 

Tony Quigley, Head of the Illegal Money Lending Team said: "Illegal money lending is horrendous. The impact on victims. It just ruins lives.

"What we see is these loan sharks, or illegal lenders are a community service - when they're not, they're ripping people off who can least afford it."

To avoid falling victim to loan sharks, those in financial difficulties wanting to borrow money are strongly advised to make sure their lender is properly licensed.

Shona Alexander from Citizens Advice said: "Never take money from someone you don't know, even if they are recommended by a friend of a friend of a friend, never take money across the doorstep and never give your bank details to anyone you don't know.

"Go with your gut reaction, if it doesn't feel right, it's not right. Just walk away and don't have anything to do with them.

"What you should do is go and discuss things with your bank, go and sort out your mortgage company, go and contact your council about your council tax bill and come and see us at Citizens Advice. That's the way to steer clear of a loan shark, they're really bad news."

As well as warning adults about the dangers of loan sharks operating online, the Illegal Money Lending Team has published a book aimed at primary school children.

It is hoped the storybook will prompt tech savvy pupils to pass on the advice to their parents. 

Hafsha Dadabhai-Shaikh from Get Families Talking co-wrote the book. She said: "This campaign is really really important because we are trying to get a message out there about loan sharks.

"Loan sharks are dangerous, loan sharks are illegal, and especially where families have low literacy, low language and low literacy skills, adults may not realise that there is another way. We need to make people aware that there are other options."

Those concerned about being targeted by loan sharks are being urged to get help from the Illegal Money Lending Team.

Not Sure What A Loan Shark Is?

If you can answer yes to one or more of these questions you might be borrowing from a loan shark:

  • Did they offer you a cash loan?

  • Did they not give you paperwork?

  • Did they add huge amounts of interest or APR to your loan?

  • Have they threatened you?

  • Are you scared of people finding out?

  • Have they taken your bank card, benefit card, passport, watch or other valuables from you?

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