Students at UK universities – particularly those from overseas – are being urged to beware of illegal money lenders, as a new campaign warns of the growing threat of loan sharks.
The England Illegal Money Lending Team (IMLT) has launched the awareness drive ahead of National Student Money Week, after seeing an increase in the number of students seeking help from the team after borrowing from a loan shark.
The IMLT is asking universities nationwide to support the campaign by sharing posters, social media content, and other resources to alert students to the dangers and inform them of how to get help.
Dave Benbow, head of the IMLT, known as Stop Loan Sharks, said all students – particularly those from overseas – can be vulnerable and the number who have borrowed from illegal lenders could be much higher due to under-reporting.
“Being a student can mean financial hardship, and for those coming from overseas, feelings of isolation can make matters worse,” he said.
“Sadly, illegal lenders sometimes come from the same community or cultural background as their borrowers, posing as friends and offering help when they are at their most vulnerable. But what seems like a lifeline can quickly turn into spiralling debt and misery.
“These borrowers can be made to feel ashamed, afraid and isolated. This, combined with language and cultural barriers, may mean they are reluctant or unable to reach out for help. But we are here for everyone, and we want to make sure they know there is nothing to feel ashamed about. They are not alone and help is available.
“We want students to enjoy their university experience in England, not live in fear. We are here for everyone, no matter where they are from, and we are determined to tackle this issue.”
Kellie McAlonan, chair of the National Association of Money Advisers (NASMA), which organises Student Money Week, said: “International Students can often face the most financial uncertainty. Exchange rates, cultural differences, and getting used to cost of living in the UK can be a real challenge, often leading to students being desperate to make their money stretch further, and vulnerable to illegal lending.
“NASMA encourages student money advisers on campuses across the country to raise awareness of illegal lending and foster an environment where international students feel supported to raise concerns and report issues, and get the help and support they need.
National Student Money Week provides a valuable opportunity to support all students – regardless of where they come from – to build the financial capability and confidence that will serve them well long after their student years.”
As part of the campaign officers from Stop Loan Sharks have been visiting universities to talk about the dangers of illegal lenders.
Richie Pugh, a student money adviser from the University of Salford and member of NASMA, said he supported the campaign.
“International students are a vulnerable part of our student community,” he said. “Cultural understanding of how money works can vary depending on where they have travelled from to study in the UK, which can lead to international students potentially being targeted by illegal lenders.
“It is important that as educational establishments we look to provide as much information as possible to help students avoid being scammed and being targeted by loan sharks in this way.”
Tauqir Aslam, Community Safety Specialist at Manchester City Council’s Student Safety Group, said he was also supporting the campaign, adding: “We take the safety of our students seriously. We will, in partnership with the Illegal Money Lending team, take action to support students exploited by loan sharks.”
The Stop Loan Sharks team has also delivered training at universities including the University of Chester and University Campus of Football Business (UCFB) in Manchester and had feedback that staff there will be looking out for the signs of loan sharks operating in the student community.
The IMLT has seen cases in which illegal lenders have confiscated passports or ID documents, added excessive interest and charges, and threatened to shame a student by telling their family about the debt. Some borrowers have faced intimidation, harassment, and threats.
While no students were recorded among those supported by the IMLT in 2021 and 2022, they made up one per cent of those who sought help in both 2023 and 2024 and that number rose to 4% in 2025.
Recent ongoing investigations by the IMLT involving students include:
- A Nigerian student in the West Midlands who borrowed £4,000 for essentials and was forced to repay £1,400 per month. His passport was seized, and extra charges were added when he fell behind.
- A Nigerian student in London who borrowed £2,000 from a fellow student and was threatened when she couldn’t keep up with repayments. Her passport was also taken, and threats were made to her family.
- An Indian student who borrowed £6,000 from another student and, despite believing she had cleared the debt, was told she owed £1,500 more. She was bombarded with threatening calls when she refused to pay.
- A 78-year-old woman who borrowed £12,000 for her grandson’s tuition fees was threatened with having her house burned down when she struggled to repay.
Figures from the Centre for Social Justice (CSJ) estimate that 1.08 million people in England are in debt to loan sharks
Illegal lenders operate without authorisation from the Financial Conduct Authority and are not bound by regulations that protect borrowers. They can add any interest and charges that they choose, leaving borrowers with no legal recourse if they cannot pay.
The IMLT is a national organisation hosted by Birmingham City Council, which was set up over 20 years ago to investigate and prosecute loan sharks and support borrowers.
Anyone who believes they have borrowed from a loan shark, or knows someone who has, is urged to contact the Stop Loan Sharks team via the 24/7 confidential helpline on 0300 555 2222 or by emailing reportaloanshark@stoploansharks.gov.uk. They can also send a WhatsApp message to 07700 102773 (available Monday to Friday 9am to 8pm).
More information and other ways to get in touch, including a Live Chat facility, can be found on the website stoploansharks.co.uk
Interpreters are available if needed.
