Loan sharks are targeting students – how you can stay safe

Being a student in the UK is an exciting time, but it also brings a fair share of challenges and one of the biggest is money.

When cash gets tight, it can be tempting to borrow, especially if someone seems friendly and offers to ‘help you out.’ But if that ‘help’ comes from the wrong person, it could turn into a nightmare.

We are talking about illegal money lenders – better known as loan sharks.

What is a loan shark?

A loan shark is someone who lends money without the proper licence from the Financial Conduct Authority (FCA). While they may appear helpful at first, they often add extremely high charges and use intimidation or threats to collect repayments.

How to recognise a loan shark

Even if they seem like a friend, there are warning signs that someone who offers to lend money is not operating legally. They include:

• Having extra charges or high interest rates added to what you owe
• Not being given any written agreement or loan paperwork
• Being asked to repay far more than you borrowed
• Being threatened or intimidated you if you struggle to pay
• Having your passport, ID card or bank card taken as ‘security’

 What should I do if I have been targeted by a loan shark?

You are not alone. There is confidential, free help available. The England Illegal Money Lending Team (also known as Stop Loan Sharks) is a national organisation dedicated to protecting people from illegal lenders. They can help you safely get out of a dangerous loan situation.

Those helped in recent years have included students who have borrowed for various reasons, including rent, equipment and Visa requirements.

If you think someone you know has borrowed from a loan shark, you can still contact Stop Loan Sharks on their behalf for confidential advice.

If you are having financial difficulties, it is important to get help as soon as possible. Your university may be able to help with grants or advice.

If you suspect that you or someone you know has borrowed from an illegal lender, contact Stop Loan Sharks now.

You can contact Stop Loan Sharks anytime:

• Visit: stoploansharks.co.uk
• Call the 24/7 confidential hotline: 0300 555 2222
• Email: reportaloanshark@stoploansharks.gov.uk 
• Live Chat: Available on the website Monday to Friday, 9am–5pm

Interpreters can be arranged if English is not your first language.

Remember, if you have borrowed from a loan shark, you have done nothing wrong and you will not be in trouble – they are breaking the law, not you.

Loan sharks rely on fear and silence. If you are in trouble - or think a friend might be - reach out to Stop Loan Sharks. You will be listened to, supported, and protected.