London Daily

Focus on the big picture.
Sunday, Oct 11, 2026

'Are you a loan shark?' UK cracks down on illegal lending

'Are you a loan shark?' UK cracks down on illegal lending

Early on a summer's morning in a quiet residential street, a police officer knocked on a door and asked the man who answered: "Are you a loan shark?"

A few minutes later, the man and a woman were marched from the house as specialist debt investigators emerged with wads of cash and mobile phones, part of a hunt for the loan sharks who are preying on victims of Britain's cost-of-living crisis.

Inflation heading for double digits, and running far ahead of wage increases, means Britons are facing the tightest financial squeeze in decades.

Illegal lenders typically offer to help people to meet unexpected outlays, and then demand exorbitant interest rate payments soon after.

Debt charity StepChange said it had seen a 17% rise in clients seeking debt advice in May compared with May 2021, many of them having fallen behind on their energy bills.

Dave Benson, an operations manager at the government's Illegal Money Lending Team (IMLT), which coordinated the raid in Billericay, a commuter town east of London, said his unit was exposing the extreme measures some lenders were taking.

"We've prosecuted loan sharks for assault, kidnap, blackmail, rape," Benson said outside the raided property as some neighbours looked on.

In one case, he said, petrol was thrown over a victim by two men who then delivered their warning: "You know what is coming next."

The 59-year-old man and the 42-year-old woman who were arrested in Billericay were taken for into custody for questioning and were later released under investigation pending further enquiries.


MENACING BEHAVIOUR


In Britain, anyone charging interest for lending money without a registration at the Financial Conduct Authority is deemed to be a loan shark.

According to a report in March from the Centre for Social Justice (CSJ), a think tank, as many as 1.1 million of England's total population of 56.5 million could be borrowing from illegal lenders, with over a fifth of borrowers taking more than five years to pay the money back.

Many lenders initially present themselves as well-intentioned, willing to help people who live from paycheck to paycheck and cannot afford to pay a relatively small or unexpected bill, before demanding their high interest charges.

Typically, the IMLT agency worked on cases where people were approached by someone they knew, for example a supermarket worker who took a loan from a colleague only to be threatened with violence after struggling to repay it.

Now, many approaches happen remotely after the COVID-19 pandemic accelerated the shift online, giving lenders new ways to reach people, and new ways to threaten and intimidate them.

Britain's finance ministry said it had increased the budget for the loan shark team by 5% this year to help address the problem.

The IMLT says there is typically a lag between an increase in illegal lending and victims reporting it, making it hard to show a definite link between the cost-of-living squeeze in Britain and the number of people using loan sharks.

But charities are bracing for the situation to get worse when a government-imposed price cap on household energy bills is scheduled to rise. Increases set for October and again for January are forecast to nearly triple prices for heating and electricity compared to the start of this year.

Matthew Greenwood at the CSJ said many people had unwittingly turned to illegal lenders during the pandemic and the same appeared to be happening again .

"Loan sharks are bad. Don't use them, because when you when you do, there's just no way out," Benson said.

($1 = 0.8425 pounds)

Newsletter

Related Articles

0:00
0:00
Close
UK Government Rejects US-Russia Diesel Agreement and Reaffirms Sanctions Against Moscow
UK and Germany Agree to Deepen Security and Economic Cooperation Following Berlin Talks
British Prime Minister Burnham Pledges Closer EU Ties During Visit to Germany
UK Announces New Sanctions on 17 Russia-Linked Entities During Foreign Secretary's Ukraine Visit
UK and Germany Finalize Kensington Treaty to Strengthen Defense and Technology Cooperation
Britain Maintains Diplomatic Mission in East Jerusalem Despite Israeli Closure Deadline
English Councils Push Government to Rethink Proposed Funding Cuts
Scottish Homebuilding Falls to Lowest Level in 11 Years
BBC Chief Matt Brittin Defends Restructuring as Staff Challenge Job Cuts
UK Finance Warns High Energy Costs and Bond Yields Are Complicating Fiscal Outlook
UK Adopts All 44 Recommendations on Regulating AI in Healthcare
Chancellor John Healey Prepares Autumn Budget as Borrowing Costs Strain Public Finances
UK Investigators See Strong Indications of Iranian Link After RAF Fairford Security Operation
Laura Trott Pledges Tighter Controls on Political Activism in UK Classrooms
Welsh Ministers Launch Long-Term Review of North Wales and Anglesey Crossings
Welsh Government Orders 18-Month Study of Road Solutions Around Newport
Reform UK MP Sarah Pochin Faces Scrutiny Over £800,000 Second Home Purchase
British Households Grow More Concerned About Fuel and Energy Prices
NHS Leaders Warn of Rising Winter Pressure on Emergency Departments
Kemi Badenoch Proposes £2.3 Billion Employer National Insurance Cut for Young Workers
Middle East Conflict Could Erase UK Fiscal Headroom, Economists Warn
Manchester City Found Guilty of Multiple Premier League Financial Rule Breaches
UK Security Services Find Strong Indications of Iranian Role in RAF Fairford Incident
Costa Coffee Returns to Operating Profit on Iced Drinks and Menu Changes
Asos Warns Customers After Unauthorized Access to Retail App and Data
Kemi Badenoch Puts Growth and Deregulation at Center of Conservative Conference
Campaigners Warn of Deepening Social Care Crisis for Disabled Adults
Study Finds Rising Early-Onset Cancer Rates Among Adults Under 50 in Britain
UK Coach Operators Warn High Diesel Prices Could Force Route Cuts
FCA Opens Independent Review Into Handling of Epstein-Linked Whistleblower Case
Argentina Vows to Block Falkland Islands Offshore Oil Development
UK Chancellor Prepares Fiscal Measures and Welfare Reforms Ahead of Autumn Budget
Sainsbury’s and Morrisons Explore Potential Multi-Billion-Pound Merger
UK Weighs Tariffs on Chinese Electric Vehicles to Align With European Union
UK Threatens Diplomatic Expulsions Over Planned Closure of East Jerusalem Consulate
UK Energy Price Cap Hits Three-Year High as Middle East Conflict Raises Costs
Seventh Arrest Made in Suspected Terror Plot at RAF Fairford
Systemic Education Collapse Sparks Mass Student Uprisings in France
Green Party Faces Backlash Over Resolution Equating Zionism With Racism
Conservatives Debate Scrapping Environmental Rules for New Homes
Cornwall Insight Warns UK Energy Bills Could Approach £2,000 This Winter
UK Coach Operators Warn of Service Cuts as Diesel Prices Exceed £2
Scottish Parliament Approves £68 Billion Budget With New Tax and Property Measures
FCA Opens Independent Review Into Handling of Epstein Whistleblower
UK Government Drops Plan to Suspend Jury Trials in England and Wales
Bank of England Holds Interest Rate at 3.75% as Markets Watch November
Two Iranian Nationals Charged Over Alleged Plot Targeting Manchester Jewish Community
UK Fiscal Headroom Halves to £11 Billion Ahead of Budget, EY Warns
US Bomber Withdrawal From RAF Fairford Prompts UK Security Review
Sarah Wakfer Appointed Chair of Northern Ireland’s Health and Care Regulator
×