London Daily

Focus on the big picture.
Wednesday, Feb 04, 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
Political Censorship: French Prosecutors Raid Musk’s X Offices in Paris
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
Tech Mega-Donors Power Trump-Aligned Fundraising Surge to $429 Million Ahead of 2026 Midterms
UK Pharma Watchdog Rules Sanofi Breached Industry Code With RSV Vaccine Claims Against Pfizer
Melania Documentary Opens Modestly in UK with Mixed Global Box Office Performance
Starmer Arrives in Shanghai to Promote British Trade and Investment
Harry Styles, Anthony Joshua and Premier League Stars Among UK’s Top Taxpayers
New Epstein Files Include Images of Former Prince Andrew Kneeling Over Unidentified Woman
Starmer Urges Former Prince Andrew to Testify Before US Congress About Epstein Ties
Starmer Extends Invitation to Japan’s Prime Minister After Strategic Tokyo Talks
Skupski and Harrison Clinch Australian Open Men’s Doubles Title in Melbourne
DOJ Unveils Millions of Epstein Files, Fueling Global Scrutiny of Elite Networks
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
China Lifts Sanctions on British MPs and Peers After Starmer Xi Talks in Beijing
Trump Nominates Kevin Warsh as Fed Chair to Reorient U.S. Monetary Policy Toward Pro-Growth Interest Rates
AstraZeneca Announces £11bn China Investment After Scaling Back UK Expansion Plans
Starmer and Xi Forge Warming UK-China Ties in Beijing Amid Strategic Reset
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
U.S. Signals Potential Decertification of Canadian Aircraft as Bilateral Tensions Escalate
Former South Korean First Lady Kim Keon Hee Sentenced to 20 Months for Bribery
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
China Executes 11 Members of the Ming Clan in Cross-Border Scam Case Linked to Myanmar’s Lawkai
Trump Administration Officials Held Talks With Group Advocating Alberta’s Independence
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
Shopping Chatbots Move From Advice to Checkout as Walmart Pushes Faster Than Amazon
Starmer Seeks Economic Gains From China Visit While Navigating US Diplomatic Sensitivities
Starmer Says China Visit Will Deliver Economic Benefits as He Prepares to Meet Xi Jinping
UK Prime Minister Starmer Arrives in China to Bolster Trade and Warn Firms of Strategic Opportunities
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Amazon to Cut 16,000 Corporate Jobs After Earlier 14,000 Reduction, Citing Streamlining and AI Investment
Federal Reserve Holds Interest Rate at 3.75% as Powell Faces DOJ Criminal Investigation During 2026 Decision
Putin’s Four-Year Ukraine Invasion Cost: Russia’s Mass Casualty Attrition and the Donbas Security-Guarantee Tradeoff
Wall Street Bets on Strong US Growth and Currency Moves as Dollar Slips After Trump Comments
UK Prime Minister Traveled to China Using Temporary Phones and Laptops to Limit Espionage Risks
Google’s $68 Million Voice Assistant Settlement Exposes Incentives That Reward Over-Collection
Kim Kardashian Admits Faking Paparazzi Visit to Britney Spears for Fame in Early 2000s
UPS to Cut 30,000 More Jobs by 2026 Amid Shift to High-Margin Deliveries
France Plans to Replace Teams and Zoom Across Government With Homegrown Visio by 2027
Trump Removes Minneapolis Deportation Operation Commander After Fatal Shooting of Protester
Iran’s Elite Wealth Abroad and Sanctions Leakage: How Offshore Luxury Sustains Regime Resilience
U.S. Central Command Announces Regional Air Exercise as Iran Unveils Drone Carrier Footage
Four Arrested in Andhra Pradesh Over Alleged HIV-Contaminated Injection Attack on Doctor
Hot Drinks, Hidden Particles: How Disposable Cups Quietly Increase Microplastic Exposure
UK Banks Pledge £11 Billion Lending Package to Help Firms Expand Overseas
Suella Braverman Defects to Reform UK, Accusing Conservatives of Betrayal on Core Policies
Melania Trump Documentary Sees Limited Box Office Traction in UK Cinemas
Meta and EssilorLuxottica Ray-Ban Smart Glasses and the Non-Consensual Public Recording Economy
WhatsApp Develops New Meta AI Features to Enhance User Control
Germany Considers Gold Reserves Amidst Rising Tensions with the U.S.
×