Follow these simple tips to make sure you don't get caught by a loan shark
Tip one - Only borrow from legal lenders
Ask for proof the lender has a Consumer Credit Licence
Tip two - People lending without a licence are illegal
You are not breaking the law if you borrow from someone without a licence but you are likely to be ripped off and worse.
Tip three - Illegal lenders are loan sharks
You may have been bitten by a loan shark if your loan keeps growing even though you pay regularly. One loan shark customer had to pay £50 a week out of her benefits of £74 per week. Another was charged 117,000 per cent interest (APR).
Tip four - Some loan sharks threaten you when you can't repay
These kind of loans are unenforceable without a court order
Tip five - Most loan sharks don't provide paperwork
You never know how much you have paid
Tip six - Report your lender if you don't think they have a licence
Phone our confidential help line 0300 555 2222. It is staffed 24 hours a day, seven days a week, 365 days a year
- We will check to see if they are legal
- You will not get into trouble with the authorities
- Remember, it is the loan shark who is behaving illegally.
Tip seven - You probably won't have to repay loans from an illegal lender
Contact our helpline for guidance.
Tip eight - If you think you've been bitten by a loan shark
Call 0300 555 2222 (charges are local rate including inclusive minutes from mobile phones)
or
Email: stoploansharks@birmingham.gov.uk.
Tip nine - If in doubt give us a shout!
The help line is staffed by members of an Illegal Money Lending Team working with North Lincolnshire Council Trading Standards to ensure that loan sharks are brought to justice.
More information
Visit the loan shark website for more information.