Loan sharks are unlicensed moneylenders and it is never a good idea to borrow from them. They charge very high interest rates and often use threats and violence when people can’t pay back their loan.
|Typical interest rate (APR)||Monthly repayment||Total interest||Saving on interest|
|Door to door lenders||177%||£137.50||£650||£583.50|
Typical example of £1000 loan borrowed over 12 months Credit union loan APR based on Saving Based Loan Account. Source: Enterprise Credit Union
KHT is working with the Illegal Money Lending Team (IMLT) to make tenants aware of the dangers of loan sharks.
Our work includes:
- Training sessions on how to recognise the signs of loan sharks operating in your neighbourhood
- Estate walkabouts to tell you what to look out for, how to report it and alternatives to loan sharks
- Sessions explaining safer ways of lending money, such as through Credit unions.
- The England Illegal Money Lending Team have helped over 16,000 victims and secured the prosecutions and imprisonment of hundreds of loan sharks.
If you or someone you know is the victim of a loan shark, call the Illegal Money Lending Team via our contact centre on 0151 290 7000.