Have you ever come across a client who you think might be in debt to a loan shark? Do you want to help but you’re not quite sure how to go about it?

The England Illegal Money Lending Team – also known as Stop Loan Sharks – can give you all the tools and training you need to be able to help someone in that position start their journey back to financial freedom.

What is the England Illegal Money Lending Team, or Stop Loan Sharks?

The IMLT is the only team in England dedicated to investigating and prosecuting loan sharks and supporting borrowers. It was created 20 years ago and since then has supported over 31,500 people and written off over £91.2 million worth of illegal debt, securing over 420 prosecutions for illegal money lending, leading to more than 600 years in jail.

It has a team of specialist officers who work in the community to raise awareness, including offering free training sessions to organisations who may come into contact with people at risk of being targeted by loan sharks. The team also works closely with borrowers, offering support and advice. The team is known more commonly in communities as Stop Loan Sharks.

What is a loan shark?

A loan shark, or illegal money lender, is someone who lends money and asks for repayments, but who does not have the necessary authorisation from the Financial Conduct Authority (FCA). They do not follow the rules and regulations that the FCA has in place to protect borrowers. They often charge extremely high interest rates and can resort to threats, intimidation and even violence to make people pay.

How can local organisation help in the fight against loan sharks?

As the Stop Loan Sharks team covers the whole country, it relies on partner organisations working at a grassroots level to be its eyes and ears in communities and flag up any suspected loan shark activity.

Statistics show that it can take a borrower over two years from the point of taking a loan before they report an illegal lender. Sometimes people are afraid to report a loan shark because of possible repercussions and threats, but also through a sense of shame and a feeling that they are somehow to blame.

However, they may seek debt advice or support earlier than that as they try to find ways of managing their finances and this may be the point that they give away vital clues that they are in debt to a loan shark.

A frontline worker asking the right questions at the right time and knowing where to direct someone for advice and help can make a huge difference in someone’s life, saving them from being trapped in a cycle of debt and misery.

What should you look out for?

There are many warning signs that someone is in debt to an illegal lender, including the following:

They may be struggling financially but be unable to explain why. They may have a job or steady income but still can’t make ends meet.
They may be withdrawn, anxious or depressed and decline social invitations with no reason.
They may be afraid to leave home, or anxious about visitors.
They may be constantly short of cash and always looking for ways to avoid spending or cut back.
They may not have access to their bank card or passport because they may have handed it over to a loan shark as security.
They may be receiving threatening texts or calls.
They may mention that they have borrowed from a friend or family member – but even close friends or relatives may still be a loan shark.

How can Stop Loan Sharks help local organisations?

Stop Loan Sharks offers free training to organisations, which can be tailored to suit and delivered online or in person. This can help raise awareness about illegal lending and teach staff the signs to look out for and the questions to ask.

Stop Loan Sharks can also offer promotional resources such as posters, postcards and leaflets that can be displayed in public areas. There is also an official Partnership Recognition Scheme, rewarding those organisations that show commitment to helping in the fight against loan sharks.

A range of social media toolkits are also available which partners are encouraged to download and share to help raise awareness about Stop Loan Sharks and the help on offer

How to get in touch and find out more

To find out more about becoming a Stop Loan Sharks partner, visit http://www.stoploansharks.co.uk/for-partner-agencies/

To organise training email Trish.Cassidy@birmingham.gov.uk

Social media toolkits are available to download at www.stoploansharks.co.uk/social-media-toolkit-3-2/

Other resources are available here: www.stoploansharks.co.uk/resources/

If you have a client who you think is in the position you can refer them to Stop Loan Sharks for confidential help and support.

They – or you – can call the 24/7 confidential hotline 0300 555 2222 or join the live chat which is available on the website www.stoploansharks.co.uk from Monday to Friday 9am to 5pm.

For further information on the support available and how to get in touch, visit the website www.stoploansharks.co.uk

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