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Can You Spot an Illegal Money Lender?

When debts are piling up and you need money fast, you’ll often do anything to ensure you fix this – especially if you have a loved one or children depending on you. However, in your haste to do what is ultimately right, you should make sure the company is legitimate – otherwise, you could find yourself in debt to an illegal money lender.

More than 300,000 people are in debt to loan sharks

According to a government statement, more than 300,000 people are in debt to illegal money lenders in the UK. Criminals who prey on the vulnerable, loan sharks generally start off appearing friendly but will then charge extortionate interest rates so customers are trapped in persistent debt.

According to the Money Advice Service, some loan sharks have even charged interest rates as high as 719,000%. Fail to keep up with repayments and these people will often do what criminals usually do – make threats or attack.

How do I identify a loan shark?

Whether operating out of an office or through a website, spotting a loan shark is easier said than done. On the surface, they might appear to be respectable business but there are a few things which set them apart from other companies:

  • If you apply for a loan, these individuals will offer no – or barely any – paperwork;

  • They will refuse to answer certain questions, such as how much interest the loan comes with;

  • A loan shark may randomly add additional charges or increase the amount you owe;

  • If a payment is missed, these individuals will probably resort to intimidation or violence.

Once you owe money to a loan shark, it’s common for these people to state that reporting them would be counterproductive. They argue you may face prison for unpaid debts, but this isn’t true. A lender who isn’t properly authorised has no legal right to recover funds. In fact, because the loan itself is illegal, a loan shark cannot legally force you to repay it.

Therefore, if you know a loan shark, report them to police.

Is Consolidation Express legitimate?

Consolidation Express is a legitimate company but – of course – the same claim might be made by someone trying to scam your details. You can tell we’re the real deal because we’re regulated by the Financial Conduct Authority and you can find us on the Financial Services Register (number 784206).

A loan shark just after your money would not be found there.

Consolidation Express – safe and simple lending

Apply for a debt consolidation loan through us and you could have the funds you need within just a couple of hours. No nasty surprises, no unexpected interest hikes, just a safe and legitimate service.

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