Illegal lending: loan sharks
Loan sharks are illegal lenders who should be avoided. They charge very high interest rates and sometimes use threats and violence to frighten people into paying back the money.
Reasons to avoid loan sharks
Loan sharks often target families on low incomes or those who find themselves in difficult times.
Loan sharks sometimes frighten people by saying they'll be prosecuted and even sent to prison if they don't pay up. This can't happen.
Not repaying a loan from an unlicensed lender isn't a crime.
Checking lenders are authorised
The law says anyone lending money must be authorised and regulated by the Financial Conduct Authority (FCA) .
Loan sharks are not licensed to lend money and operate outside the law.
You can check if a firm is authorised by the FCA at the following link.
If you've borrowed from a loan shark
If you've borrowed from a loan shark, you are under no legal obligation to repay the debt.
The Police Service of Northern Ireland (PSNI) has a team of detectives who specialise in illegal money lending. They offer practical support and take action against illegal lenders.
Find out more information and how to contact PSNI illegal money lending.
Other ways of borrowing money
There are different types of loans available.
If you need a loan, always go to an authorised lender.
Learn more about loans and borrowing money.
Help and advice on borrowing
Always get free, independent help before you pay a commercial service.
Many organisations offer this on money matters, including: