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Report a loan shark - gavel representing UK legal action against illegal moneylenders

How to Report a Loan Shark

Updated for 2026

If you or someone you know has been targeted by an illegal moneylender, knowing how to report a loan shark could protect you and others from further harm. Loan sharks operate outside the law, charging extortionate interest rates and using intimidation to collect payments. In 2026, with the cost of living still squeezing household budgets across the UK, more people than ever are at risk of falling into the hands of these unlicensed lenders.

This guide covers everything you need to know: what a loan shark actually is, how to spot one, how to report them, and what support is available if you have already borrowed from one.

What Is a Loan Shark?

A loan shark is someone who lends money without authorisation from the Financial Conduct Authority (FCA). Under the Financial Services and Markets Act 2000, lending money without proper FCA authorisation is a criminal offence. Loan sharks are breaking the law, and any agreement you have with one is legally unenforceable.

They typically operate informally, often through word of mouth in local communities. There is rarely any proper paperwork, no written terms and conditions, and no transparency about interest rates. What starts as a small, seemingly helpful loan can quickly spiral into thousands of pounds owed.

According to the England Illegal Money Lending Team (IMLT), loan sharks have been known to:

  • Charge interest rates exceeding 1,000% APR
  • Add fees and charges without warning
  • Take bank cards, passports, or other personal items as security
  • Use threats, violence, or intimidation to collect debts
  • Force borrowers to commit crimes to repay what they owe

How to Spot a Loan Shark

Loan sharks do not always look like criminals. They might be a neighbour, a colleague, or someone at the school gates who offers to help when money is tight. Here are the warning signs:

They have no FCA authorisation. Every legitimate lender in the UK must be registered on the FCA Financial Services Register. If they are not listed, they are operating illegally.

They offer no proper paperwork. A legitimate lender will always provide a written credit agreement with clear terms, interest rates, and repayment schedules. Loan sharks avoid leaving a paper trail.

They increase the debt without explanation. If the amount you owe keeps growing despite regular payments, or new charges appear from nowhere, you are likely dealing with an illegal lender.

They use intimidation. Any lender who threatens you, pressures you, takes your personal belongings as security, or tries to control your finances is acting unlawfully.

How to Report a Loan Shark in the UK

If you believe someone is operating as an illegal moneylender, you should report them. Reporting a loan shark can be done anonymously, and you will not get into trouble for having borrowed from one.

England

Contact the Illegal Money Lending Team (Stop Loan Sharks):

  • Call: 0300 555 2222 (24-hour helpline)
  • Text: loan shark followed by your message to 60003
  • Email: reportaloanshark@stoploansharks.gov.uk
  • Online: via the Stop Loan Sharks website

Wales

Wales is also covered by the England Illegal Money Lending Team. Use the same contact details above.

Scotland

Contact Police Scotland on 101 or report through Trading Standards Scotland.

Northern Ireland

Contact the Department for the Economy Trading Standards Service on 0300 123 6262.

You can also report a loan shark through GOV.UK, which will direct you to the correct team based on your location.

What Happens After You Report a Loan Shark?

Once a report is made, the Illegal Money Lending Team will investigate. They have the power to gather evidence, make arrests, and prosecute illegal lenders. Since the IMLT was established, it has secured over 400 prosecutions across England and Wales, with sentences including significant prison terms.

Your identity will be kept confidential. The IMLT also provides support to victims, including access to counselling, financial advice, and help with legitimate borrowing alternatives.

If you have already borrowed from a loan shark, you are not legally obligated to repay them. Because they are operating without FCA authorisation, the credit agreement is unenforceable. Courts cannot force you to repay an illegal debt.

Am I in Trouble If I Borrowed from a Loan Shark?

No. Borrowing from a loan shark is not a crime. The criminal is the person lending money without a licence. Many victims of loan sharks are vulnerable people who were in desperate financial situations. The authorities understand this, and reporting a loan shark will not result in any action against you.

The IMLT and organisations like MoneyHelper and StepChange can help you find legitimate ways to manage your finances going forward.

Alternatives to Borrowing from a Loan Shark

If you are struggling financially and considering borrowing, there are safer options available:

Credit unions offer affordable loans to members, often with much lower interest rates than high street lenders. You can find your local credit union through the Association of British Credit Unions.

If you are already in debt and unable to keep up with repayments, formal debt solutions may help. An Individual Voluntary Arrangement (IVA) allows you to make affordable monthly payments towards your debts over a fixed period, with the remaining balance written off at the end.

A Debt Relief Order (DRO) may be suitable if you owe less than 50,000 pounds, have minimal assets, and a low disposable income. After 12 months, qualifying debts are written off entirely.

For a broader look at your options, read our guide to dealing with debt.

Get Free Debt Advice Today

If you are worried about money, do not suffer in silence. Free, confidential debt advice is available from several organisations including StepChange, Citizens Advice, and National Debtline.

Swift Debt Help cannot assist with loan shark debt directly, as the lender is operating outside the law. However, if you have other debts that are causing you stress, we may be able to help you find the right solution.

Disclaimer: This article provides general information only and does not constitute financial advice. Every person financial situation is different, and you should seek professional advice before making decisions about your debts.

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