Loan Sharks - Information Now
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There are other affordable credit options available to you if you need to borrow money, even if you have been turned down for credit or a loan in the past. Please visit the Affordable Credit article on Information Now for more information.
Loan sharks are unlicensed money lenders who often charge very high interest rates and sometimes use threats and violence to frighten people who can’t pay back their loan.
Licensed moneylenders are regulated by the Financial Conduct Authority (FCA). Unlicensed loan sharks work outside of the law. If you have borrowed from a loan shark you have not broken the law, they have.
repay for years and years
How do you know that the money lender is a loan shark
A loan shark:
may appear to be your friend at first by offering to lend you money
rarely offers paperwork, you don’t really know how much you owe
charges very high interest rates
adds additional amounts to the debt so you struggle to pay
takes items as security, such as passports and bank cards
resorts to extreme methods to reclaim their debts such as threats, intimidation or violence
You can check the Financial Services Register online to see if a lender is licenced. This lists all approved lenders and financial services. It is free to get basic information from the register, including trading names and the activities for which a business is licensed.
You can report a loan shark or suspected loan shark to Stop Loan Sharks. They have a free and confidential hotline open 24 hours a day 7 days a week . Or you can send them a text, email or a private Facebook message.
For more information on loan sharks visit www.gov.uk
Go to Newcastle’s Debt and Money Advice section for more information if you are worried about debts, want to get an affordable loan, or need to know how upcoming benefit changes will affect you.
Dealing with Debt article on Information Now
Affordable Credit article on Information Now
Credit Unions article on Information Now
Stop Loan Sharks has a number of real life case studies on YouTube telling the stories of victims of Loan Sharks: www.youtube.com/user/StopLoanSharks
Website: fsa.gov.uk/register/home.do
Website: stoploansharks.co.uk