Being a student in the UK can be an exciting experience, but it can also come with challenges — and money worries are often one of the biggest.
As part of National Student Money Week, our Money Advice Service is sharing essential guidance to help you make informed decisions about your finances. The topic for today is illegal money lenders – better known as loan sharks.
When money gets tight, it can be tempting to borrow, especially if someone seems friendly and offers to ‘help you out’. But if that ‘help’ comes from the wrong person, there could be serious consequences.
What is a loan shark?
A loan shark is someone who lends money without the proper licence from the Financial Conduct Authority (FCA). While they may appear helpful at first, they often add extremely high charges and use intimidation or threats to collect repayments.
How to recognise a loan shark
Even if they seem like a friend, there are warning signs that someone who offers to lend money is not operating legally. They include:
- Having extra charges or high interest rates added to what you owe
- Not being given any written agreement or loan paperwork
- Being asked to repay far more than you borrowed
- Being threatened or intimidated you if you struggle to pay
- Having your passport, ID card or bank card taken as ‘security’
What should I do if I’m struggling financially?
If you are struggling financially or think you’ve been approached by a loan shark, it’s important to reach out for support as soon as possible. Contact firstpoint so that we can help you access support from the university’s Money Advice Service and appropriate wellbeing services.
We’re here to help to ensure you are supported throughout your studies – we can help you get in contact with support teams within the university and can also signpost you to a range of specialist external support services designed to help depending on your circumstances.
What should I do if I’ve been targeted by a loan shark?
You are not alone. There is confidential, free help available.
The England Illegal Money Lending Team (known as Stop Loan Sharks) is a national organisation dedicated to protecting people from illegal lenders. They can help you safely get out of a dangerous loan situation. If you’re worried about someone else, you can also contact them for advice on their behalf.
Students have been among those helped in recent years, often after borrowing for rent, equipment, or visa-related costs.
If you suspect that you or someone you know has borrowed from an illegal lender, get in touch with Stop Loan Sharks for support and guidance. You can contact Stop Loan Sharks in a variety of ways:
- Visit: www.stoploansharks.co.uk
- Call the 24/7 confidential hotline: 0300 555 2222
- Send a WhatsApp message to 07700 102773 (available Monday to Friday 9am to 8pm)
- Email: reportaloanshark@stoploansharks.gov.uk
- Live Chat: Available on the website Monday to Friday, 9am–5pm
Remember, if you have borrowed from a loan shark, you have done nothing wrong and you won’t be in trouble – they are breaking the law, not you.
Loan sharks rely on fear and silence. If you’re in trouble – or think a friend might be – reach out for support. You’ll be listened to, supported, and protected.
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