International students starting courses at UK universities this year 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 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, said all students – particularly those from overseas – are 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 abroad, 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.”
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 has risen to 2% in the first half of 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, known as Stop Loan Sharks, 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.
More information and other ways to get in touch can be found on the website stoploansharks.co.uk.
Live Chat is available on the website from 9am to 5pm, Monday to Friday and interpreters are available if required.
