What is a loan shark?
Illegal money lenders, or loan sharks, take many forms – you may not even realise that you have borrowed from an unlicensed lender.
If you’re unsure if you have borrowed money from a loan shark, here are a few tell-tale signs:
- They offer you a loan but do not give you any paperwork
- They take your bank card as security on the loan
- They don’t tell you when you will finish paying
- They increase the amount you owe, even if you are making regular payments
- They threaten or use violence to get money from you
If you have borrowed money from a loan shark, you have not broken the law. It’s the trader who is operating illegally, and they often target the vulnerable or people who are struggling to access mainstream credit.