Fighting Illegal Money Lending for #StopLoanSharksWeek

In our latest update supporting Stop Loan Sharks Week, our Vulnerability Proposition Manager, Paula Searle , provides insights about our work with the Illegal Money Lending Team (IMLT), who are an organisation that investigate and prosecute illegal money lenders while supporting those who have borrowed money from a loan shark.

For over 30 years we’ve worked tirelessly to improve the lives of clients dealing with debt, providing a service that is tailored to each client’s circumstances. As we support Stop Loan Sharks England with Stop Loan Sharks Week, and their #NoBlameNoShame campaign, we want to highlight the stark statistics that an estimated 2% of the population are using a loan shark and that 43% of victims wrongly believe the loan shark was their friend.  

Who uses loan sharks? 

There’s often a misconception that people use loan sharks because they can’t access traditional means of credit, and whilst that is true for some, 70% of people who have borrowed from a loan shark also have regulated credit too. People are often surprised to hear that 10% are homeowners and the majority of victims pay the loan shark by bank transfer.   

But worryingly, many people are borrowing from a loan shark without even realising, and we find many people present these debts to us believing they are a loan from a friend.  

How are we supporting clients who may be struggling with loan sharks? 

We’ve worked closely with the Illegal Money Lending Team (IMLT) to help us identify when debts believed to be from a friend may actually be illegal lending. We’ve introduced additional questions into our advice process, including understanding if interest is being charged and whether the person lending also lends to others – key indicators that they may be operating illegally. 

Building a true picture of these debts enables us to consider the impact on any debt solutions and also determine the best course of action for the client – which will include a referral or signpost to the Illegal Money Lending Team who provide specialist support.  

Accessing expert training from Stop Loan Sharks has helped us provide insight and coaching to advisors, ensuring they can confidently discuss and refer clients who have become victims of loan sharks.  

Moving forward in partnership 

We’re continuing our work with the Illegal Money Lending team to help further their role in the investigation and prosecution of illegal money lenders. By sharing our experience, insights and data, we are helping them build a more informed picture of illegal lending in the debt sector, which will enable us to continue to improve how we identify and respond to the issue. 

To find out more about the work we do to support our clients, or to get involved, get in touch with us.

If your organisation is interested in working with the Illegal Money Lending Team or for details about training, contact partner@stoploansharks.co.uk 

Authorised and regulated by the Financial Conduct Authority.