Dealing With Loan Sharks In The United Kingdom

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loan-sharkWhat is the best way to deal with loan sharks in the United Kingdom? Anyone who wants to answer this question honestly will tell those who ask it not to deal with these people at all. Loan sharks are people who are lending money without a license, and they are charging exorbitant interest rates. If people are unable to repay the money at these astronomical rates, the loan sharks may threaten physical violence to “encourage” borrowers to make every attempt possible to repay the money.

The most important thing to remember is that a loan shark is unlicensed to loan money to people in the United Kingdom. Lenders that are licensed operate under the close watch of the Office of Fair Trading (OFT) that has codes of practice that every licensed member must follow. The fact that loan sharks remain unlicensed means that they are not following the OFT’s codes of practice, and they are acting in an illegal manner.

The most likely thing people who borrow money from a loan shark can expect is that the loan’s terms will not be in the borrowers’ favor. They will be paying an interest rate that is unbelievably high. For example, one person was required to pay interest at the unimaginable rate of 131,000 percent APR. Furthermore, borrowers will be pursued in the most uncomfortable manner if they can’t make their payments. In order to “help” their borrowers repay their debts, these loan sharks often suggest that consumers take another disadvantageous loan from them that will pay their first detrimental loans.

If you have borrowed from a loan shark in the past, don’t worry. Borrowers are not the ones who have broken the law. The only lawbreakers are those who loan people money without being licensed. The only thing that will be waiting for these people if they are discovered to be illegal moneylenders is a jail sentence.

The modus operandi for loan sharks follows a regular pattern. In the beginning, they are very nice to those who go to them for money. When people begin to experience difficulties repaying their loans, illegal money lenders become very unpleasant to be around. These loan sharks are not in the habit of offering people a thorough contract that outlines all of the terms that everyone will need to sign. Because the terms are not written into a contract, the loan shark can change the terms at will.

In some cases, the loan shark has increased the amount of money that the borrowers owe or made it appear as if the borrower took out additional loans. Loan sharks have also been known to refrain from offering the borrowers information that they would be entitled to receive from a legitimate lender, such as the interest rate they will need to pay. When asked, loan sharks may not tell the borrowers how much money is left to be paid.

Another of the unscrupulous tactics that loan sharks use is to take unconventional items as collateral for the loan, such as a passport, a bank card or a driving license. They are also lenders who begin to threaten their borrowers if they are not making their payments. Lenders may not legally engage in this behavior whether they are licensed or not.

Illegal Money Lending Teams exist to take complaints from those who have borrowed from a loan shark. If you are in this situation, contact your local Illegal Money Lending Team to report this matter. If you feel that your life is currently in danger, contact the police as well.

One of the loan shark’s scare tactics is to tell borrowers that they will be subject to prosecution and prison time if they fail to repay their debts. The fact is that an illegal moneylender is not legally entitled to collect the money that borrowers owe them. Therefore, borrowers must not worry that they will face prosecution over the money that they borrowed from a loan shark.

Mike’s Story

Read “Mike’s” story as an example of what can happen when people engage the illegal services of a loan shark. Mike needed to purchase a vehicle when he was 17 years old, and he resorted to obtaining the money he needed from a loan shark. What happened after this transaction occurred explains why people should heed the advice that was given at the very beginning of this article.

Mike borrowed 250 pounds for his vehicle, but this story only ends after he repaid the loan shark 90,000 pounds. The debt was allowed to come to such a large amount of money because the loan shark used one of the common tactics loan sharks employ and continued to add interest to the debt. True to form, the loan shark began to threaten Mike’s family, and this situation led Mike to become so stressed that he had a heart attack. This horrible scenario ended when he reported the loan shark to the Illegal Money Lending Team, and the loan shark received an eight-month jail sentence.

Anne’s Story

Anne’s story shows that loan sharks are advertising in the legitimate media to offer their services to unsuspecting victims. After looking in her local newspaper, Anne came across an advertisement for a moneylender. This particular moneylender took Anne’s passport to secure the loan, a tactic that was described above that is the domain of the loan shark. She was told that the passport would be hers again once she had repaid the loan in full.

Anne’s troubles with the loan shark began after she became too ill to work and was unable to make her weekly payments. The loan shark came to her home and removed electronic equipment that had not been offered as collateral. On top of being terrified that day the loan shark stole her property, she was assessed a charge of 100 pounds for the visit. Anne made sure to never miss a payment after this incident.

Although Anne was careful to make her payments on time and retain proof that she had done so, her illegal moneylender still managed to make her pay ever increasing sums of money for making late payments. This meant five years of the loan shark appearing at her home and trying to break in. With each visit, Anne was required to pay the loan shark more money.

This story has a happy ending as well because the Illegal Money Lending Team also caught Anne’s illegal moneylender who received a long custodial sentence. He was also required to pay back the 270,000 pounds that he had acquired through his illegal money lending operation.

Nothing exists in England’s laws that states borrowers have any obligation to repay debts owed to loan sharks. On the contrary, people can report these lenders to the Illegal Money Lending Teams without the fear that their personally identifying information will be released to the public. Those residing in England may dial 0300 555 2222 or text LOAN SHARK with all of the details to 60003. They may also communicate by sending an email to reportaloanshark@stoploansharks.gov.uk. Those living in Wales may call 0300 123 3311. They may also send an email to imlu@cardiff.gov.uk. The number to call in Scotland is 0141 2876 655 or send their email messages to loansharks@glasgow.gov.uk.

Source: https://www.gov.uk/report-loan-shark



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