A handout produced to accompany the 'Stop loan sharks' workshop delivered by Anna Fraser, of the England Illegal Money Lending Team hosted by Birmingham City Council, at the Big Local spring event in Kings Cross, London. The event took place on 9 May 2014 and was organised as part of the Local Trust programme of networking and learning events for Big Local residents. The session was designed to equip participants with the knowledge to understand what loan sharks look like, the signs of loan shark activity, why people use loan sharks and how to report loan shark activity if encountered. More information about the Illegal Money Lending Team, including links to lesson plan resources for young people, can be found on the team's web page http://www.birmingham.gov.uk/stoploansharks

1. Hosted by Birmingham City Council
Illegal Money Lending
Short Guide

2. Hosted by Birmingham City Council
Key Project Objectives
 Achieving and understanding of the nature and scale of
the loan shark problem
 Reducing the incidence of illegal money lending
 Addressing the climate of fear that works against
reporting
 Changing the perception that lenders can operate with
exemption from punishment
 Supporting victims in finding viable alternative sources of
credit following the removal of an illegal lender

3. Hosted by Birmingham City Council
Background cont/
InvestigatorsLiaise
Work from region
Work from
BirminghamBest Practice
Specialist skills Safe and efficient systems
• We consist of investigators, Liaise Officers Operational
managers, intel team, admin assistants and press office.

4. Hosted by Birmingham City Council
The Issue
“The activities of illegal lenders are profoundly damaging to
both individual victims and the communities in which they
operate. Illegal money lending locks in and reinforces
financial and social exclusion, compromising the viability of
household and family budgets and degrading quality of life,
not least through the exacerbation of anti-social behaviour,
drug use, violence and crime in areas in which these issues
are already deeply problematic.”¹
¹Policis/PFRC study for DTI “Evaluation of the illegal money lending pilots”, February 2007

5. Hosted by Birmingham City Council
The illegal money lender
• A person who, not being the holder of a
license¹, lends money (lending in the
course of trade or business) and charges
interest, especially at an exorbitant or
unlawfully high rate.
• Synonyms: Loanshark
• Criminal offence: s39(1) Consumer Credit Act 1974
¹The Consumer Credit Act 2006 requires most businesses and individuals that offer goods or services
on credit or lend money to consumers to be licensed by the Office of Fair Trading (UK). Trading
without a licensing arrangement is a criminal offence and can result in a fine and/or imprisonment.

6. Hosted by Birmingham City Council
The Victim
Previous research suggests that a person in Great Britain taking an illegal
loan tends to be:
• At a vulnerable stage in life
• On tight budget margins
• In deprived, low-income areas
• Over 50% of victims have exhausted all legal credit
• Around 30% have drug, alcohol or mental health
problems¹
BUT LONDON SEES A MUCH BROADER RANGE OF PEOPLE
THAN THIS!
¹Information based on, Policis/PFRC study for DTI “Evaluation of the illegal money lending pilots”,
February 2007

7. Hosted by Birmingham City Council
DO
• Actively encourage victims of loan sharks to telephone
the stop loan shark hotline.
• Pass information onto the stop loan sharks hotline
number or to your local liaise officer about suspected
issues of loan shark activity in your community.
• Raise awareness verbally and visually about the Stop
Loan Sharks Project in your community for example
putting posters up in your Offices and notice boards.
• Contact your LIAISE officer to speak about ideas for
awareness raising in your community

8. Hosted by Birmingham City Council
DON’T
• Ever put yourself or anyone else in danger or
at risk
• Ever approach someone you suspect to be a
loan shark
• Actively go out to find out information about
someone you suspect maybe acting as a
loan shark.

9. Hosted by Birmingham City Council
Remember……
• victims are not in any trouble if they take
out an illegal loan.
• Once the illegal lender has been arrested,
the victim NO LONGER HAS TO PAY!

10. Hosted by Birmingham City Council
Remember……
• Illegal lending is a crime (2 years imprisonment)
• victims are not in any trouble and do not commit a
criminal offence if they take out an illegal loan
• An illegal debt is not enforceable (s40 CCA)
• A national 24/7 hotline exists for advice and to report
Illegal loans cannot be recovered through the county
court
• Persons who lend money need a license – free OFT
public register at www2.crw.gov.uk/pr/Default.aspx

11. Hosted by Birmingham City Council
Do you know a victim?
• Owe money to a friend?
• No paperwork?
• Loan that just keeps growing?
• What you can do:
– Pass the intelligence to us
– Support the individual to talk to us
– Arrange a meeting with a LIAISE Officer for a
discussion about what support is available
• Every piece of information can help

12. Hosted by Birmingham City Council
How to contribute:
To pass information to the team you can:
• Call the hotline on 0300 555 2222 at anytime
• E-mail:
reportaloanshark@stoploansharks.gov.uk
• Text ‘Loan shark (+ your message)’ to 60003

13. Hosted by Birmingham City Council
Regional Contacts
• Steve Ward, East Midlands
• steve.ward@birmingham.gov.uk
• Ailsa Guard, South West of England
• ailsa.guard@birmingham.gov.uk
• Wendy Loades, South West of England
• wendy.loades@birmingham.gov.uk
• Jo Clarke, South East of England
• Joanne.clarke@birmingham.gov.uk
• Lin Fisher, South East of England
• Lin.fisher@birmingham.gov.uk
• Denise Meek - North East Region
denise.meek@Birmingham.Gov.uk
• Natalie Barker, - North East Region
• Natalie.barker@birmingham.gov.uk
• Nadeem Mahammed, West Midlands
• nadeem.mahammed@birmingham.gov.uk
• Christopher Connor, West Midlands
Christopher.Connor@Birmingham.Gov.uk
• Anna Fraser, East of London
• anna.fraser@birmingham.gov.uk
• Karen O’Neill, South of London
• Karen.o’neill@birmingham.gov.uk
• Jo Hartley, North West Region
• Joanne.Hartley@birmingham.gov.uk
• Tracy Fairhurtst, North West Region
• Tracy.Fairhurst@birmingham.gov.uk
• Aidan Wheller, Yorkshire and
Humberside
• Aidan.Wheller@birmingham.gov.uk>
Mike McAughtrie, Yorkshire and
Humberside
• Mike.Mcaughtrie@birmingham.gov.uk
• Matt Thubron, EETSA
• Matthew.Thubron@birmingham.gov.uk
• Patrick Brown, EETSA
• Patrick.Brown@birmingham.gov.uk

14. Hosted by Birmingham City Council
Contact details
• Anna Fraser
• 07557 203 150
• LIAISE Officer for London Region
• 0300 555 2222 is the Stop Loan Sharks
hotline, open 24 hours a day, seven days
a week.