What to do if you have borrowed from a loan shark

If you have borrowed money from a loan shark you are under no legal obligation to repay the debt. You should contact your local Trading Standards office immediately. They will help you deal with your situation and the loan shark.

To find your nearest Trading Standards office enter your postcode in the box located on the right-hand side of the Trading Standards website homepage.

Is it a crime not to repay a loan from a loan shark?

If a lender isn't licensed by the OFT then they have no legal right to recover the debt.

Loan sharks sometimes frighten people by saying they'll be prosecuted and even sent to prison if they don't pay up. This can't happen - not repaying a loan from an unlicensed lender isn't a criminal offence.

definition of Loan Shark

A loan shark is a person or body that offers illegal unsecured loans at high interest rates to individuals, often backed by blackmail or threats of violence. They provide credit to those who are not willing or are unable to obtain it from more respectable sources, usually because interest rates commensurate with the perceived risk are illegal.