London Daily

Focus on the big picture.
Friday, Nov 21, 2025

'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
ASU Launches ASU London, Extending Its Innovation Brand to the UK Education Market
UK Prime Minister Keir Starmer to Visit China in January as Diplomatic Reset Accelerates
Google Launches Voluntary Buyouts for UK Staff Amid AI-Driven Company Realignment
UK braces for freezing snap as snow and ice warnings escalate
Majority of UK Novelists Fear AI Could Displace Their Work, Cambridge Study Finds
UK's Carrier Strike Group Achieves Full Operational Capability During NATO Drill in Mediterranean
Trump and Mamdani to Meet at the White House: “The Communist Asked”
Nvidia Again Beats Forecasts, Shares Jump in After-Hours Trading
Wintry Conditions Persist Along UK Coasts After Up to Seven Centimetres of Snow
UK Inflation Eases to 3.6 % in October, Opening Door for Rate Cut
UK Accelerates Munitions Factory Build-Out to Reinforce Warfighting Readiness
UK Consumer Optimism Plunges Ahead of November Budget
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
Caribbean Reparations Commission Seeks ‘Mutually Beneficial’ Justice from UK
EU Insists UK Must Contribute Financially for Access to Electricity Market and Broader Ties
UK to Outlaw Live-Event Ticket Resales Above Face Value
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
German Entertainment Icons Alice and Ellen Kessler Die Together at Age 89
UK Unveils Sweeping Asylum Reforms with 20-Year Settlement Wait and Conditional Status
UK Orders Twitter Hacker to Repay £4.1 Million Following 2020 High-Profile Breach
Popeyes UK Eyes Century Mark as Fried-Chicken Chain Accelerates Roll-out
Two-thirds of UK nurses report working while unwell amid staffing crisis
Britain to Reform Human-Rights Laws in Sweeping Asylum Policy Overhaul
Nearly Half of Job Losses Under Labour Government Affect UK Youth
UK Chancellor Reeves Eyes High-Value Home Levy in Budget to Raise Tens of Billions
UK Urges Poland to Choose Swedish Submarines in Multi-Billion € Defence Bid
US Border Czar Tom Homan Declares UK No Longer a ‘Friend’ Amid Intelligence Rift
UK Announces Reversal of Income Tax Hike Plans Ahead of Budget
Starmer Faces Mounting Turmoil as Leaked Briefings Ignite Leadership Plot Rumours
UK Commentator Sami Hamdi Returns Home After US Visa Revocation and Detention
UK Eyes Denmark-Style Asylum Rules in Major Migration Shift
UK Signals Intelligence Freeze Amid US Maritime Drug-Strike Campaign
TikTok Awards UK & Ireland 2025 Celebrates Top Creators Including Max Klymenko as Creator of the Year
UK Growth Nearly Stalls at 0.1% in Q3 as Cyberattack Halts Car Production
Apple Denied Permission to Appeal UK App Store Ruling, Faces Over £1bn Liability
UK Chooses Wylfa for First Small Modular Reactors, Drawing Sharp U.S. Objection
Starmer Faces Growing Labour Backlash as Briefing Sparks Authority Crisis
Reform UK Withdraws from BBC Documentary Amid Legal Storm Over Trump Speech Edit
UK Prime Minister Attempts to Reassert Authority Amid Internal Labour Leadership Drama
UK Upholds Firm Rules on Stablecoins to Shield Financial System
Brussels Divided as UK-EU Reset Stalls Over Budget Access
Prince Harry’s Remembrance Day Essay Expresses Strong Regret at Leaving Britain
UK Unemployment Hits 5% as Wage Growth Slows, Paving Way for Bank of England Rate Cut
Starmer Warns of Resurgent Racism in UK Politics as He Vows Child-Poverty Reforms
UK Grocery Inflation Slows to 4.7% as Supermarkets Launch Pre-Christmas Promotions
UK Government Backs the BBC amid Editing Scandal and Trump Threat of Legal Action
UK Assessment Mis-Estimated Fallout From Palestine Action Ban, Records Reveal
UK Halts Intelligence Sharing with US Amid Lethal Boat-Strike Concerns
King Charles III Leads Britain in Remembrance Sunday Tribute to War Dead
UK Retail Sales Growth Slows as Households Hold Back Ahead of Black Friday and Budget
×