Kings Student Money Mentors

With all the talk about loan sharks recently, the Money Mentors want you to know that if you or anyone else find yourselves in loan shark-related trouble, there are people who can help! The England Illegal Money Lending Team (IMLT) is a fantastic organisation set up to combat loan sharks and has been doing so very successfully for nearly 20 years. In today’s blog, I’m going to tell you all about them and what they do. 

So who are the IMLT? 

Did you know that there are approximately 1.08 million people in the UK in debt to illegal money lenders? Well, the IMLT was set up in 2004 and aims to spread awareness of the risks of such individuals and what they do. 

I myself have been lucky enough to attend some talks by one of their top ‘Liaise Officers’ and have seen an example of how they work with communities, partner agencies, and educational establishments like KCL, to help us understand this problem and how it can be managed. They do this by giving talks, showing videos, creating newsletters, distributing flyers and posters, attending campaigns such as our Stop Loan Sharks Campaign, and in many more ways so that we can help identify and tackle this issue. 

The IMLT also has resources for students like us. To see just one example of how loan sharking can become part of a student’s life, take a look at this video. You can also download the Stop Loan Sharks App for further information. 

The IMLT doesn’t just spread awareness though. Each team of the IMLT has a specialist investigator and a Liaise Officer who has previously worked for the police, trading standards and debt advice services and investigated and help to prosecute illegal money lenders where they appear in England. In fact, since they were set up, they’ve supported almost 32,000 people (including students) and have written off £87 million of debt! 

Not only that, but the IMLT also offers a fantastic amount of support to those who have suffered at the hands of loan sharks for as long as they require it, free of charge! 

Our December campaign this year focused on a collaboration with the IMLT to raise awareness of the dangers of loan sharking. Called the ‘Stop Loan Sharks’ Campaign, we hope those of you who attended our events know slightly more about this topic, and if you ever want to learn more, King’s Student Money Mentors and the IMLT are always here to help!

If you’d like to contact the IMLT, their 24/7 confidential helpline can be reached at 0300 555 2222; they also have an e-mail service, a text service, and a Live Chat on their website, as well as a Facebook page and an Instagram to contact them on. 

Shivam Chotai
King’s Student Money Mentor
Part of Money & Housing Advice

The King’s Student Money Mentors blog shares our students’ personal experiences and thoughts on money-related topics. Any reference, opinions or recommendations on a particular company/brand are only the views of the student(s) who wrote the blog post. King’s College London, the Money & Housing Advice service and the Money Mentor project do not share the views in the blogs nor endorse any of the companies mentioned. Readers should conduct their own research before using any companies mentioned in our blog posts.

Managing your finances as a student in London can be difficult and student loans are not always enough. This can make it tempting for students to look at other types of loans available, but not all these options are safe. In this blog post, we will aim to teach you about loan sharks, the different ways they can target students, and what you can do to protect yourself from loan sharks.  

Some of you may have heard of the term “loan shark” before, but if you haven’t, a loan shark refers to someone who lends money without a license to do so. Anyone can be a loan shark. They may appear to be friendly at first, but they often charge extremely high-interest rates and borrowing from a loan shark comes with risks. Along with high-interest rates, you may experience threats of violence if your repayments are late. This can pressure some individuals into taking out a second loan to repay the first, meaning that they end up in a vicious cycle of debt.  

Many students may be in a difficult financial situation. Paying rent and bills along with weekly shopping, course materials and trips can seem impossible. All of this can make some students turn to loan sharks out of desperation. Social media also plays a big part in loan sharks targeting young people. The most recent statistics show that out of all age groups, under 25s are most likely to encounter loan sharks via social media. For example, there have been cases of loan sharks joining university WhatsApp groups and reaching out to students, threatening to expose them on the group chat if they do not receive their payments on time. In addition, some loan sharks post online ads via Instagram, misleadingly mentioning false promises of easy money. Others have also been known to use Snapchat to advertise their illegal money-lending operations.  

There are things you can do to protect yourself from loan sharks. Remember to spot the signs of an illegal money lender. These include no credit agreements or contracts, cash payments, no payment receipts, threats or violence and no flexibility when it comes to repayment dates. Don’t trust anyone unlicensed who offers to loan you large sums of money, even if they appear to be your friend. Additionally, be wary of anyone on social media who offers you money and don’t give any personal information, e.g., address and account details, to strangers online. If you are struggling financially, try to consider other more reputable sources of income. Some ideas include part-time jobs, scholarships, bursaries, hardship funds, setting up a student bank account to gain access to an interest-free overdraft, King’s Affordable Accommodation Scheme (KAAS) or selling unwanted textbooks. If you have tried the above and are still having issues, you can always contact the KCL Money & Housing Advice Service, either by calling their advice line or attending one of the weekly drop-ins on campus and they will be able to assist with any queries or worries.  

Finally, if you do find yourself in the situation of owing money to a loan shark, remember you are not in trouble. It is the loan shark who has committed a crime. Don’t be afraid to ask for help. You can phone the Illegal Money Lending Team (IMLT) on 03005552222 and they can investigate and take action against the loan shark. So, the sooner you ask for help, the better. 

Aanchal Raina
King’s Student Money Mentor
Part of Money & Housing Advice

The King’s Student Money Mentors blog shares our students’ personal experiences and thoughts on money-related topics. Any reference, opinions or recommendations on a particular company/brand are only the views of the student(s) who wrote the blog post. King’s College London, the Money & Housing Advice service and the Money Mentor project do not share the views in the blogs nor endorse any of the companies mentioned. Readers should conduct their own research before using any companies mentioned in our blog posts. 

It’s not unusual that students need some extra cash, especially for the month leading up to the holiday season — but where do you find that money? Have you ever encountered someone who was willing to give you that money and would happily give more to you or any of your contacts? Before you take it, think about the possibility that they are a loan shark! 

Now what are loan sharks? You might have heard of them or seen them in movies. You might think of a seedy guy who dresses like an old gangster, but I was surprised to hear in our training from the Illegal Money Lending Team (IMLT) that they can look like anyone. They could be someone your age, an elderly neighbour or wealthy professional. In different cultures, they can be known by other names like Ah Long in Malaysia or Chulcos in Ecuador. Despite different appearances and names, they all do the same thing, and it is not only destructive for anyone taking money from them, but also illegal. 

In the UK, anyone lending money must be approved by the Financial Conduct Authority (FCA). Loan sharks are not approved and will use practices which put you at risk of exploitation and harm. Initially, they can seem very nice and look like they are just trying to help you out like a friend – this is to build trust and to get you to accept the money. There usually isn’t any paperwork, just an informal agreement and no explicit terms or conditions. They may take your personal information including passport or bank details for security, then suddenly tell you that there is a huge amount of interest or repayment. If you can’t meet their demands, they may threaten you and harass you. You might end up taking out more money to repay them or be told to carry out criminal activity. They may even threaten to take you to court for not repaying. 

This all sounds very scary, but I was relieved to read on MoneyHelper that only the loan shark is acting illegally, and although you may feel embarrassed, scared, or guilty for taking the money, it isn’t illegal to take the loan and you are seen as a victim of a crime. Therefore, it is important to report them if you suspect you are dealing with a loan shark so that you stop being harassed and to prevent further harm.  

Helpfully, I found you can check if your lender is authorised by the FCA. But even if they are authorised, anyone harassing you for repayment is committing a crime. To report someone in England, go to https://www.stoploansharks.co.uk/ or ring their hotline on 0300 555 2222. Any contact is treated confidentially, and they will investigate the lender. They can also protect you and your family during this process. Of course, if you feel you are in immediate danger, call the police on 999. 

I know for me that learning about loan sharks isn’t just about looking out for me, but also my friends and family! I hope that this blog has made you think twice about taking money for Christmas presents from that friend of a friend… 

Rebecca Lam
King’s Student Money Mentor
Part of Money & Housing Advice

The King’s Student Money Mentors blog shares our students’ personal experiences and thoughts on money-related topics. Any reference, opinions or recommendations on a particular company/brand are only the views of the student(s) who wrote the blog post. King’s College London, the Money & Housing Advice service and the Money Mentor project do not share the views in the blogs nor endorse any of the companies mentioned. Readers should conduct their own research before using any companies mentioned in our blog posts.