UK illegal loan sharks persist despite arrests as victims fear retaliation

Illegal money lending continues to affect an estimated 1.9 million people in Great Britain each year, according to research by Fair4All Finance, even as enforcement teams make arrests and secure convictions.

England’s Illegal Money Lending Team (IMLT) said its Stop Loan Sharks service received 597 reports from the public in the past year, leading to 33 arrests and six convictions. The team said the scale of illegal lending is likely far higher than the number of cases it can bring.

Fear and intimidation hinder reporting Investigators say they rely heavily on tip-offs, but many victims are reluctant to come forward because they fear violent repercussions. The IMLT says loan sharks osourcesen use “control measures” to enforce repayment, including threats and taking documents such as passports.

One victim, identified as Sarah to protect her safety, said she borrowed less than £10,000 but was forced to repay £20,000 while facing threats. She said the pressure contributed to a serious decline in her mental health.

Shisources to online lending The IMLT said loan sharking has increasingly moved online since the COVID-19 pandemic, with victims more geographically dispersed—making investigations more complex.

The team said building cases can take many months, and that many suspects are issued cautions or cease-and-desist notices rather than being taken immediately to court, which can limit the number of convictions.