Don't let loan sharks mess with your head
Many people will struggle with finances at some point in their lives. For some people, when times are tough, they feel they have no option but to borrow from loan sharks. It is estimated that 310,000 households in the UK are borrowing from lenders who are unauthorised, often charge extortionate rates and may resort to violence, threats and intimidation to enforce their loans.
One in four people may experience some kind of mental health issue in the course of a year and money worries can escalate problems. The stress of being involved with an illegal lender can have awful effects. 21% of borrowers interviewed by England Illegal Money Lending Team (IMLT) during 2014 said that they had poor mental health, with several speaking about thoughts of suicide.
Often the person who introduces the loan shark is seen as a trusted friend or even family member. One such case was that of Mike, who borrowed from a 'friend of the family' to buy a used car. Over the years Mike paid a staggering £90,000 to the loan shark, all from an initial loan of £250.
This had a hugely detrimental impact on Mike and his family. The loan shark attacked Mike in front of his children and he lost his home as he couldn’t pay the mortgage. Aged 33, he suffered a stress-related heart attack.
On more than one occasion, Mike attempted suicide. He said "You wouldn’t wish it on anybody, it affected my relationship with my wife. If I wasn’t at work I was home arguing and it affected the kids. They had nothing".
The turning point was when Mike spotted an article in his local paper about a loan shark who had been prosecuted by the ILMT. Mike called the confidential hotline. From that point forwards he was supported and the loan shark was prosecuted and imprisoned.
“I wish I’d known there was somewhere to go years ago” Mike said “The Team were fantastic, they offered so much support, and every promise they made they delivered. It was such a relief when I found out the loan shark was arrested and then put in prison.
Extortionate interest rates
Illegal lenders will often appear very friendly in the first instance but should never be used under any circumstances. They rarely offer paperwork so borrowers are unsure about the terms of the agreement and how much is owing. The rates of interest can also be extortionate, as high as 131,000% has been identified in the past. Some loan sharks will also resort to taking items from the victim’s home as security, including items such as passports and bank cards.
If you or someone you know has been the victim of a loan shark, then please email, text or speak to the Illegal Money Lending Team in the strictest confidence.
- Telephone 0300 555 2222 (Lines are open 24/7 and are answered by a trained investigator)
- Email firstname.lastname@example.org
- Text LOAN SHARK and the lender’s details to 60003