What to Do If You Have Borrowed From a Loan Shark

Loan sharks have no legal right to recover debts, and customers who find themselves under pressure by a loan shark should not be alarmed by threats relating to prosecution if the loan is not repaid. Harassment, whether carried out by a licensed or an unlicensed lender, is an offence. Those who have borrowed money from an unlicensed lender, or those who are being harassed for payment, should contact their local Trading Standards office for advice about the most appropriate way to handle the situation. Any violent threats relating to the repayment of the loan should be reported to the police. If you are worried about your current financial situation, there is help and advice available from debt management charities (see Avoiding Excessive Debt).

Anyone with a poor credit score or a low income looking to borrow money should remember that there are plenty of legitimate lenders who will approve a loan if you are able to suggest a reasonable repayment plan. There are even loan companies dedicated to lending to people in short-term financial difficulties, such as the unemployed (see Special Circumstances).