Not Sure What A Loan Shark Is? Signs to look out for
If you can answer yes to one or more of these questions you might be borrowing from a loan shark:
- Did they offer you a quick loan?
- Did they appear to be a friend at first, but now you’re not so sure?
- Did they say there was no need for paperwork?
- Did they add extra charges or huge amounts of interest to your loan?
- Have they threatened you?
- Are you scared of people finding out?
- Have they taken your bank card, passport, watch or other valuables from you?
Who We Are: The England Illegal Money Lending Team
The England Illegal Money Lending Team (IMLT) was set up in 2004. Initially created as a pilot scheme in Birmingham to investigate loan sharks, it had such an impact on illegal money lending it received further government funding.
Today the England IMLT investigates and prosecutes illegal money lenders across the country and also supports those who have borrowed from a loan shark. There are similar Illegal Money Lending Teams that cover Scotland and Wales.
Each team is made up of of specialist investigators and Liaise Officers who have previously worked for organisations like the police, trading standards, and debt advice services. The investigators and Liaise Officers work together to investigate cases, ensure those affected get the support they need and prosecute illegal money lenders.
The England IMLT works as Stop Loan Sharks within local communities, within education, and with partner agencies including police forces. Since 2004, the England IMLT has supported over 33,00 people and written off over £93 million worth of illegal debt.
Is money lending illegal?
Lending money is not illegal on its own, however, it becomes problematic when it involves multiple borrowers, added charges and a lender who is not authorised by the Financial Conduct Authority (FCA).
Under the Financial Services and Market Acts 2000, anyone entering into credit agreements as a lender by way of business must be FCA-authorised, otherwise this is a criminal offence and can be prosecuted. The Stop Loan Sharks team investigates unauthorised lending, leading to prosecution.
Business to business lending of amounts over £25,000 fall outside the remit of the IMLT. Click here to find out more.
Illegal Money Lending Teams and the Financial Conduct Authority
The Illegal Money Lending Teams in England, Scotland and Wales work alongside the Financial Conduct Authority (FCA) to investigate those operating within the consumer credit market without the appropriate authorisation.
In 2016 the Government legislated to introduce an industry levy to fund the activity of the teams and to take action against illegal lending. The service is governed and overseen by the FCA and HM Treasury.
How We Work With Education and Partner Agencies
The England IMLT works closely with education providers and partner agencies such as the police, housing associations, and debt advice services. Investigating and prosecuting loan sharks is an important part of the England IMLT’s work but it also has a strong focus on prevention and works to raise awareness of the problems and issues that illegal money lending causes.
The Stop Loan Sharks team has developed a range of free education resources and free partner tools to help raise awareness. It can also deliver free in-house training for partner agencies and the police. Explore our website for more information on these resources or email Catherine.wohlers@birmingham.gov.uk to find out how we can help you.