Stop Loan Sharks
We wanted to raise awareness of LoanSharks as well as us as a unit of Guides
You can download our challenge badge here
What are Loan Sharks?
A loan shark is an unlicensed money lender. They are not regulated by the Financial Conduct Authority, do not follow their code of practice and they operate outside of the law.
Borrowing from an illegal money lender may mean that you:
- get a loan on very bad terms
- pay an extortionate rate of interest (rates as high as 131,000% APR have been recorded)
- will be harassed if you get behind with your repayments
- are pressured into borrowing more from them to repay one debt with another
Research by the Goverment and other agencies estimates that 165,000 to 200,000 people are indebted to loan sharks in the United Kingdom. Loan Sharking is very serious due to its links to organised crimes and the violence sometimes involved.
What to do if you owe money to Loan Sharks?
If you think that the person you have borrowed money from is illegal or doesnt have a license you can contact Illegal Money Lending Hotline on: 03005552222 or email email@example.com or text "loan shark" to 60003
Is it a crime not to pay back a loan from a Loan Shark?
If the person or company offers you a loan that isn't licensed by the OFT then yu have no legal rights to repay the debt. Loan Sharks can be frighten by people that say they will going to prison if they dont pay.
How are our Guides raising awareness of Loan Sharks?
Our Guiding are raising awareness of Loan Sharks by creating a booklet which allows you to solve money matter solutions and letting people know what Loan Sharks are and what to do about them. By doing this booklet you can earn a badge.