Being a student is an exciting time, but it also brings a fair share of challenges and one of the biggest can be money. When cash 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, it could turn into a nightmare. We’re talking about illegal money lenders – better known as loan sharks.

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’ve been targeted by a loan shark?

You are not alone. There is confidential, free help available from within UoG and beyond. There is the University Money Advice Team who are here on campus to help you.

You can also speak to The England Illegal Money Lending Team (known as Stop Loan Sharks)which is a national organisation dedicated to protecting people from illegal lenders. They can help you safely get out of a dangerous loan situation. Those helped in recent years have included students who have borrowed for various reasons including rent, equipment and Visa requirements. If you think someone you know has borrowed from a loan shark, you can still contact Stop Loan Sharks on their behalf for confidential advice.

If you are having financial difficulties, it’s important to get help as soon as possible. UoG may be able to help with grants or advice so Money Advice is a great first place to turn to. 

If you suspect that you or someone you know has borrowed from an illegal lender, get in touch with Stop Loan Sharks now. 

You can contact Stop Loan Sharks anytime:

• 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

Interpreters can be arranged if English is not your first language.

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.