Loan Sharks Profit from High Cost of Living, Using Violence and Intimidation to Collect Payments

These lenders offer high-interest loans with little to no paperwork and often use violence and intimidation to collect payments.

One loan shark, named "D," has been in the business for 20 years and estimates that he has lent money to hundreds of people across the country.

Another active illegal moneylender, "M," has lent millions of pounds to clients over the past 20 years and now runs a team that operates in different areas of the UK.

Both lenders charge high interest rates and require clients to provide a form of guarantee in case they are unable to keep up with repayments.

The demand for these types of loans is likely to continue as long as the cost of living remains high and other sources of credit are unavailable.

The article discusses the tactics used by illegal money lenders in the UK, specifically those of a man named D who operates in Watford.

D's tactics rely on fear and intimidation, such as threatening clients' families, to collect debts.

The article also mentions that clients of illegal money lenders are more likely to have been refused credit elsewhere and may turn to these lenders as a last resort.

The recent research for Fair4All Finance found that violence was rare, but the threat of it was common.

The article suggests that improving the regulation of "subprime" lenders and boosting alternative options such as community lenders or credit unions could help protect people from being targeted by unaffordable products and reduce the demand for illegal money lending.