Loan Sharks: The Low Down

What is a loan shark?

• People who offer to lend you money when you are in financial trouble
• They might seem friendly at first, but could turn nasty
• Loan sharks pretend to offer a community service, but they do not

Why should you avoid them?

• They may not give you a written agreement, but you need one so that you know where you stand
• You may not know how much you have to repay or for how long
• Loan sharks are often involved in other criminal activity.

Who else can I borrow money from?

• If you need a loan, always go to a licensed lender. To check they are licensed, call the Public Register on 020 7211 8608. Click here for more information on accessing affordable credit
• If you are not sure about a licensed lender or want to know your consumer rights, call Consumer Direct, a government funded advice service on 0845 040506 or visit their website at http://www.consumerdirect.gov.uk/ to find your local organisation.

What should you do if you owe money to a loan shark, or they are knocking on your door?

• You do not have to repay any money lent to your illegally
• Loan sharks have no legal right to your money
• Do not ignore the problem. It will not go away unless you decide to take action
• Loan sharks may frighten you by saying you will be prosecuted if you do not pay up, but in reality this will not happen as you have not committed a criminal offence
• If you, or anyone you know, are being threatened, or believe you are in danger at the hands of a loan shark, you should call the police
• It is an offence for someone to call on you or knock on your door uninvited and offer you a loan
• It is an offence for anyone to harass you in pursuit of an unpaid debt.

For further advice contact the Illegal Money Lending Unit in confidence on 0121 693 1122

email:stoploansharks@birmingham.gov.uk or Text Loan(space)shark(space)+your message to 60003