A 64-year-old man who ran an illegal money lending operation in the Doncaster area for over 10 years lending more than £950,000 and expecting over £1.7 million in return has been jailed.
Philip Lister admitted illegal lending between June 2015 and November 2025 and appeared before Sheffield Crown Court on Friday, October 2 to be sentenced.
Judge David Dixon sentenced him to 14 months immediate imprisonment and told him: “This is serious offending and will not be tolerated.”
The judge told Lister that while he was described by some borrowers as nice and polite, he charged high interest and his offending was no less serious than that of a stereotypical loan shark. He ignored the regulations that exist to protect borrowers.
The case was prosecuted by the England Illegal Money Lending Team (IMLT), which launched an investigation in 2025 after receiving a report that Lister had been lending illegally.
Officers discovered Lister, trading as Phil’s Autos, originally held a licence to lend money which was granted by the Office of Fair Trading in 2013. The Financial Conduct Authority replaced the OFT in 2014 and he was informed that unless he reapplied for new authorisation his permission to lend would expire in May 2015. Lister did not reapply but continued to lend.
The IMLT executed a warrant at Lister’s home in Sandtoft Road, Belton, north Lincolnshire, in November 2025. His business premises in Armthorpe, Doncaster, was also searched.
Mr Simon Mortimer, prosecuting on behalf of the IMLT, told the court when he was arrested, Lister told officers: “I’ve been lending for years, I just haven’t got an FCA licence.”
His property was searched and more than £64,000 in cash was found along with documentation which indicated an illegal lending business. The number of loans advanced during the offending period was found to be at least 1,290 and the value of the loans was £959,914 which had an anticipated return of £1,738,824.
IMLT investigators discovered Lister regularly issued loans to those unable to access mainstream credit or to assist in the purchase of a car from Phil’s Autos. Interest rates were usually in the region of 50% and borrowers were provided with a loan agreement which gave the business an air of legality.
Mr Mortimer said the IMLT spoke to a number of borrowers. Some were receiving benefits and had borrowed regularly. One took a loan for £1,500 with interest of £840 added on, paying back at £240 a month. One was shocked to discover she was paying a rate of 50%.
Another took a loan for £400 when he was struggling and later borrowed a further £600. He did now know how much interest he was paying and assumed everything was legal. When he first took out the loan Lister told him, “if you don’t make the repayments, I’ll be handing it over to someone else who you don’t want to be on the wrong side of”.
One borrower said she would panic as Lister would mention late payment charges and another said he felt intimidated and ashamed and knew penalty charges would be added.
A timetable was set under the Proceeds of Crime Act to assess the amount of money made through the offending, identify any available assets and to determine whether any confiscation is possible.
The case was prosecuted by the England Illegal Money Lending Team (IMLT) in partnership with trading standards services at City of Doncaster and North Lincolnshire councils and South Yorkshire Police.
Speaking after the hearing, head of the IMLT, Dave Benbow, said: “This was a case of someone who knew exactly what the rules were, but chose to ignore them. He was fully aware that he needed authorisation to lend money, yet continued operating without a licence, avoiding the regulations that exist to protect borrowers.
“Over many years, he lent money to a large number of people and profited from their financial difficulties. While some may have viewed him as providing a service, the reality is that he was exploiting people who were unable to access credit elsewhere.
“Unauthorised lending can have serious consequences. Illegal lenders do not carry out the affordability checks required of regulated lenders, meaning they may lend to people who cannot afford to repay. Borrowers are also denied important consumer protections, including access to support if they struggle with repayments. This can cause significant stress and leave people unable to meet essential household costs such as rent, utilities and other priority bills.
“This sentence sends a clear message that illegal lending will not be tolerated and that we take these offences extremely seriously.”
Many illegal money lenders are well known within their communities and are often introduced to borrowers through friends or family members. They are unregulated and give loans with no paperwork, charging extortionate interest rates. They can resort to threats, intimidation and even violence if repayments are not made.
The IMLT is a national body, hosted by Birmingham City Council that exists to investigate and prosecute loan sharks and support borrowers.
Anyone who has been affected by illegal money lending should call the Stop Loan Sharks 24/7 helpline on 0300 555 2222 or access support online at www.stoploansharks.co.uk. There is a Live Chat facility on the website and the team can also be contacted via WhatsApp on 07700 102773. The Live Chat and WhatsApp services are monitored from 9am to 8pm, Monday to Friday.
