Leeds comes together to stop loan sharks

Unlike legitimate lenders, loan sharks are not authorised or regulated by the Financial Conduct Authority (FCA). They often offer quick cash with little or no paperwork, but the situation can quickly escalate. They may charge very high interest rates and use threats, intimidation or harassment if repayments are missed.  

Around 60 organisations attended the event which was hosted by the England Illegal Money Lending Team (IMLT), also known as Stop Loan Sharks. All organisations signed a pledge committing to support the work of IMLT and help raise awareness of the dangers posed by illegal lenders.

The event saw speakers from IMLT sharing insights into recent investigations, prosecutions and the support available for people affected by illegal lenders.

A speaker from Leeds-based national debt advice charity StepChange spoke about the support available for people struggling with debt and financial difficulties. StepChange already works closely with IMLT to identify people who may have borrowed from a loan shark and help them access support. 

Attendees also watched a powerful video testimony from a West Yorkshire father who described the devastating impact a loan shark had on him and his family.

Leeds City Council’s financial inclusion team and housing officer Jason Phillips were among those who received a special recognition by IMLT for their work.

Councillor Asghar Khan, Leeds City Council’s executive member for housing and hubs, said: “This meeting was a valuable opportunity for us all to come together in our work to stop loan sharks, and it was great to share best practices, learnings and successes.

“Illegal money lenders target vulnerable people in our communities, people who are desperate and don’t realise who they are borrowing from.

“By signing this charter we are showing our commitment to combat illegal money lending and help people see the signs and get the help they need.”

Dave Benbow, head of the England Illegal Money Lending Team, said: "It was fantastic to see so many frontline organisations from across Leeds come together to support the fight against loan sharks and the work being done to keep communities safe.

"We know illegal lenders operate in local communities and are often well known. Many people don't even realise they have borrowed from a loan shark – they believe they've simply borrowed from someone they know or trust. Unfortunately, that can quickly lead to threats, intimidation and misery.

"Loan sharks target some of the most vulnerable people in our communities, causing financial and emotional harm. Many of the organisations represented at this event will come into contact with people affected by illegal lending in their day-to-day work. By working together, we can help them spot the warning signs and ensure people get the support they need."

Warning signs of a loan shark include: 

• Offering a loan without paperwork or clear information. 
• Taking valuables, bank cards or documents as security. 
• Adding unexpected charges or high interest. 
• Pressuring or threatening you for repayments. 
• Starting out friendly, but making you feel worried or unsafe. 

Report a loan shark and get help safely 

Stop Loan Sharks is the national team that investigates and prosecutes illegal money lenders and supports people affected by loan sharks. 

If you or someone you know needs help, contact their confidential team: 

24-hour helpline: 0300 555 2222 

WhatsApp: 07700 102773 (Monday to Friday, 9am to 8pm) 

You can also report a loan shark or get support through the online form or live chat on the Stop Loan Sharks website.