Stop Loan Sharks

Teesside University is helping to keep its students safe from loan sharks this year by supporting a new campaign from the England Illegal Money Lending Team (IMLT).

The Illegal Money Lending Team (IMLT) has reported an increase in the number of students contacting them for help after borrowing from someone who turned out to be an illegal lender, or loan shark. International students have been highlighted as particularly vulnerable as they may face additional financial pressures and language or cultural barriers that may make borrowing from legitimate lenders difficult.

“Being a student can mean financial hardship, and for those coming from abroad, feelings of isolation can make matters worse. Sadly, illegal lenders sometimes come from the same community or cultural background as their borrowers, posing as friends and offering help when they are at their most vulnerable. But what seems like a lifeline can quickly turn into spiralling debt and misery. These borrowers can be made to feel ashamed, afraid and isolated – this combined with language and cultural barriers may mean they are reluctant or unable to reach out for help. But we are here for everyone, and we want to make sure they know there is nothing to feel ashamed about. They are not alone and help is available. That is why we are launching this campaign.” Dave Benbow, Head of IMLT.

The IMLT has seen cases in which illegal lenders have confiscated passports or ID documents, added excessive interest and charges, and threatened to shame a student by telling their family about the debt. Some borrowers have faced intimidation, harassment, and threats.

Illegal lenders operate without authorisation from the Financial Conduct Authority and are not bound by regulations that protect borrowers. They can add any interest and charges that they choose, leaving borrowers with no legal recourse if they cannot pay.

Anyone who believes they have borrowed from a loan shark, or knows someone who has, is urged to contact the Stop Loan Sharks team via the 24/7 confidential helpline on 0300 555 2222 or by emailing reportaloanshark@stoploansharks.gov.uk

More information and other ways to get in touch can be found on the website stoploansharks.co.uk and live chat is available on the website from 9am to 5pm, Monday to Friday with interpreters are available if required.

---