Short story competition launched to raise awareness of loan sharks

The England Illegal Money Lending Team (IMLT) have launched a short story competition to encourage people to exercise their creative writing skills while learning about the dangers of loan sharks.

Entrants must write a short story or poem of no more than 1,250 words, which may be fiction or non-fiction and be related to a loan shark category below. Those entering are also invited to submit an original illustration to accompany their story, if they want to.

Loan sharks are illegal and operate without the correct permission from the Financial Conduct Authority. They gain control over their victims – sometimes through threats and intimidation, sometimes through much subtler means.

Loan sharks charge extortionate interest and rarely provide paperwork on the loans they give out. Some will even take bank, benefit or post office cards with PIN numbers to withdraw directly from people’s accounts, leaving their victims with very little to get by on.

Tony Quigley, Head of the England Illegal Money Lending Team, said: “We hope this competition encourages people to express themselves, but more importantly find out more about loan sharks, how to recognise the signs and where to get help if they have been a victim.

“The tactics used by loan sharks can vary from a friend offering to lend you some money until payday and charging you interest to a social media advert promoting quick cash loans with no checks. It’s important we remain vigilant to illegal money lenders and report any suspicious activity.”

A panel will assess the stories and pick their favourite from each category. These will be turned into audio stories and played during National Stop Loan Sharks Week 2020. They will then stay on the Stop Loan Sharks podcast platform for people to download and enjoy.

The winner of each category will win a £50 Amazon voucher. The judges’ decision is final and no correspondence will be entered into.

Entries to the competition will close at midnight on Friday 16th October 2020.

Please send submissions to Catherine.wohlers@birmingham.gov.uk or via post to:

Cath Wohlers, England Illegal Money Lending Team, PO Box 12971, Birmingham , B33 3BD

Category 1 – The “Friend of a friend”

This loan shark is known to everyone in the community in which they live. They went to school there, work there, drink there, socialise there. They may:

• Be male or female, young or old
• Seem like your friend – bringing you a bottle of wine at Christmas and remembering the kids’ birthdays
• Not mention interest or charges when the loan is taken out “oh pay me back when you can”
• Threaten people in subtle ways – “well, your mate Tracy wants a loan and if you don’t pay, I can’t lend her the money and I’ll have to tell her why”
• Not give any paperwork
• They will charge extortionate interest and keep people trapped in a cycle of debt – offering new loans before the last one ends

Category 2 – The Football Hooligan

This loan shark is feared. They control the estate. They threaten people who do not pay. They may:

• Double what you owe if you miss a payment
• Employ collectors
• Not give any paperwork
• Be involved in other criminality
• Suggest victims can pay via other means – prostitution, shoplifting etc
• They will charge extortionate interest and keep people trapped in a cycle of debt.
• They won’t check whether you can afford the loan before they give it to you.

Category 3 – The “Businessman”

This loan shark has an air of being official. They may:

• Use a fake business name
• Give paperwork that makes them seem legitimate
• Threaten people with court action – or tell their employer they are a bad debtor, or take their house/car
• They will charge extortionate interest and keep people trapped in a cycle of debt

Category 4 – An Online Search

This loan shark operates over the internet – via Craigslist/Snapchat/Buy and Sell pages/dating sites. They wait for people to approach them and offer loans. They may:

• Allude to a “Mr Big” (or Mrs Big) who is behind the loans, who you do not want to mess with
• Use Social Media Influencers to entice people into taking out loans
• Get nasty quite quickly if repayments are not met
• Say “well you came looking for me” when challenged
• They will charge extortionate interest and keep people trapped in a cycle of debt

Category 5 – A New Arrival

This loan shark targets people as they arrive to work in England. They may:

• Take people’s passports as a way of controlling them
• Threaten to tell family in their home country that individuals are bad debtors and are bringing shame on their family
• Not give any paperwork
• Make their victims believe that they have done something wrong by borrowing
• They will charge extortionate interest and keep people trapped in a cycle of debt.

Category 6 – The Covid-19 “groomer”

This loan shark may befriend their potential victims by offering to shop for them, post parcels or call them regularly for a chat. They may:

• Make the borrower believe they are a friend
• Offer the “favour” of lending money
• Tell the borrower that the authorities will not be happy if they do not repay their loan
• Try to force the borrower to take up Covid-19 benefits/grants to pass on to the lender
• They will affect borrower’s mental health, charge extortionate interest and keep people trapped in a cycle of debt

Category 7 – The Work Colleague

They may be a colleague at the same level or even a manager with power over individuals.

• Be male or female, young or old
• Goes out on lunch breaks with you around the shops, talks about home life problems with you, makes you trust them
• Not mention interest or charges when the loan is taken out “oh pay me back when you can”
• Threaten people in subtle ways – “well if you can’t pay I’ll have to let the boss know”
• Not give any paperwork
• Make the victim feel guilty for not being able to pay
• They will affect borrower’s mental health, charge extortionate interest and keep people trapped in a cycle of debt.

If you or someone you know have fallen victim to a loan shark, call the Stop Loan Sharks 24 hour helpline on 0300 555 2222, email us or complete an online reporting form here.