Loan Shark Debt

The definition of a loan shark is an unlicensed and therefore illegal money lender. Typically, they target vulnerable people who are unable to access credit by conventional means. As they operate outside of the law they often:

• Offer cash only loans directly on the borrower’s doorstep.
• Demand an extortionate interest rate.
• Harass borrowers who fall behind with repayments.
• Pressure customers into borrowing more, so to be forever in debt to them.

Can Swift Help?

We specialise in formal debt solutions which use the law to protect you against your creditors. If the creditor is already acting outside the law then there is little we can do regarding that particular debt.

If you’ve other debts then we can look at solutions which will free up more of your money so you can afford to pay this lender.

How to check if a lender is illegal

If you don’t have a written credit agreement, almost certainly you are dealing with an illegal lender.

All legitimate lenders need a reference number issued by the Financial Conduct Authority. If you have a written agreement, look for mention of being regulated and a reference number.

If there is a FCA reference, you can check its validity by searching for it on the Financial Services Register. This will also tell you if authorisation is real, fake, has expired or been withdrawn.

I’ve borrowed from a loan shark

You are under no legal obligation to repay a debt from an illegal lender. They can’t use the courts to enforce payment nor instruct bailiffs.

We advise paying back the original sum borrowed with a reasonable amount of interest and to advise the illegal lender you’ve taken legal advice over the matter.

You can confidentially report a loan shark and get advice on how to deal with them by contacting the Government’s Illegal Money Lending Team.