London Daily

Focus on the big picture.
Friday, Nov 07, 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
Apple to Pay Google About One Billion Dollars Annually for Gemini AI to Power Next-Generation Siri
UK Signals Major Shift as Nuclear Arms Race Looms
BBC’s « Celebrity Traitors UK » Finale Breaks Records with 11.1 Million Viewers
UK Spy Case Collapse Highlights Implications for UK-Taiwan Strategic Alignment
On the Road to the Oscars? Meghan Markle to Star in a New Film
A Vote Worth a Trillion Dollars: Elon Musk’s Defining Day
AI Researchers Claim Human-Level General Intelligence Is Already Here
President Donald Trump Challenges Nigeria with Military Options Over Alleged Christian Killings
Nancy Pelosi Finally Announces She Will Not Seek Re-Election, Signalling End of Long Congressional Career
UK Pre-Budget Blues and Rate-Cut Concerns Pile Pressure on Pound
ITV Warns of Nine-Per-Cent Drop in Q4 Advertising Revenue Amid Budget Uncertainty
National Grid Posts Slightly Stronger-Than-Expected Half-Year Profit as Regulatory Investments Drive Growth
UK Business Lobby Urges Reeves to Break Tax Pledges and Build Fiscal Headroom
UK to Launch Consultation on Stablecoin Regulation on November 10
UK Savers Rush to Withdraw Pension Cash Ahead of Budget Amid Tax-Change Fears
Massive Spoilers Emerge from MAFS UK 2025: Couple Swaps, Dating App Leaks and Reunion Bombshells
Kurdish-led Crime Network Operates UK Mini-Marts to Exploit Migrants and Sell Illicit Goods
UK Income Tax Hike Could Trigger £1 Billion Cut to Scotland’s Budget, Warns Finance Secretary
Tommy Robinson Acquitted of Terror-related Charge After Phone PIN Dispute
Boris Johnson Condemns Western Support for Hamas at Jewish Community Conference
HII Welcomes UK’s Westley Group to Strengthen AUKUS Submarine Supply Chain
Tragedy in Serbia: Coach Mladen Žižović Collapses During Match and Dies at 44
Diplo Says He Dated Katy Perry — and Justin Trudeau
Dick Cheney, Former U.S. Vice President, Dies at 84
Trump Calls Title Removal of Andrew ‘Tragic Situation’ Amid Royal Fallout
UK Bonds Rally as Chancellor Reeves Briefs Markets Ahead of November Budget
UK Report Backs Generational Smoking Ban Ahead of Tobacco & Vapes Bill Review
UK’s Domino’s Pizza Group Reports Modest Like-for-Like Sales Growth in Q3
UK Supplies Additional Storm Shadow Missiles to Ukraine as Trump Alleges Russian Underground Nuclear Tests
High-Profile Broodmare Puca Sells for Five Million Dollars at Fasig-Tipton ‘Night of the Stars’
Wilt Chamberlain’s One-of-a-Kind ‘Searcher 1’ Supercar Heads to Auction
Erling Haaland’s Remarkable Run: 13 Premier League Goals in 10 Matches and Eyes on History
UK Labour Peer Warns of Emerging ‘Constituency for Hating Jews’ in Britain
UK Home Secretary Admits Loss of Border Control, Warns Public Trust at Risk
President Trump Expresses Sympathy for UK Royal Family After Title Stripping of Prince Andrew
Former Prince Andrew to Lose His Last Military Title as King Charles Moves to End His Public Role
King Charles Relocates Andrew to Sandringham Estate and Strips Titles Amid Epstein Fallout
Two Arrested After Mass Stabbing on UK Train Leaves Ten Hospitalised
Glamour UK Says ‘Stay Mad Jo x’ After Really Big Rowling Backlash
Former Prince Prince Andrew Faces Possible U.S. Congressional Appearance Over Jeffrey Epstein Inquiry
UK Faces £20 Billion Productivity Shortfall as Brexit’s Impact Deepens
UK Chancellor Rachel Reeves Eyes New Council-Tax Bands for High-Value Homes
UK Braces for Major Storm with Snow, Heavy Rain and Winds as High as 769 Miles Wide
U.S. Secures Key Southeast Asia Agreements to Reshape Rare Earth Supply Chains
US and China Agree One-Year Trade Truce After Trump-Xi Talks
BYD Profit Falls 33 % as Chinese EV Maker Doubles Down on Overseas Markets
US Philanthropists Shift Hundreds of Millions to UK to Evade Regulatory Uncertainty in Trump Era
Israeli Energy Minister Delays $35 Billion Gas Export Agreement with Egypt
King Charles Strips Prince Andrew of Titles and Royal Residence
Trump–Putin Budapest Summit Cancelled After Moscow Memo Raises Conditions for Ukraine Talks
×