An unlicensed moneylender is known as a Loan Shark. Unlike Licensed moneylenders, Loan Sharks are not regulated by the Office of Fair Trading (OFT) and therefore don't follow the OFT's codes of practice.

Because of this, loan sharks operate outside the law. If you borrow money from a loan shark it's likely you will:

• get bad terms on the loan
• pay a very high rate of interest
• have no safe guards if you get behind on your repayments
• be harrassed into taking out more loans

Find out if the lender is licensed

The Consumer Credit Public Register lists all people allowed to loans money. If a lender isn't listed as having a current licence, don't borrow money from them.

What to do if you have borrowed from a loan shark

If you've already got a loan from a loan shark you are under no legal obligation to repay the debt. You should contact your nearest trading standards office and they will help you deal with the loan shark.

Loan Sharks and Debt Problems

If you have considered using a loan shark or are already experiencing the problems associated with loan sharks it's likely that you have existing financial problems. Our team of expert debt advisors are here to give you the best possible advice for your financial circumstances.

View the following sections of Debt Advisory Line for more information

• IVA
• Trust Deed
• Debt Management
• Debt Settlement
• Reclaim Bank Charges
• Mortgages
• Bankruptcy

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