Kings Student Money Mentors

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.

  When it comes to making the most of everything the King’s Careers service offers to its students, this blog will help demystify the process and explain how to use the Career’s service in order to maximise its benefits for you. As a final year student about to graduate- I wish I had made the most of the Careers service. However, having said that, it is important to remember that you receive support as alumni from the Careers service for up to two years. 

For example, as a student in first year, the way I came across the Careers service was via the Careers events that were hosted where we received weekly newsletters of job opportunities and events. I know sometimes the emails can seem like a lot, but make sure you go through them in order to check if anything catches your eye. Going to events, particularly the ‘Discover Careers in…’ gave me more of an idea on which industries actually interested me and what did not. Usually, in the emails and alternatively on the Instagram, there would be a link directing you to KCC, where if you scrolled down, you would be able to book your place on an event.  

The same goes for job opportunities. Usually, these would all be placed on a newsletter/ Instagram story. The link would then direct you to KCC where usually it would have a summary of what the specific job entailed (very helpful when it comes to preparing for an interview) and then on the side instructions- i.e ‘send your CV and cover letter to so and so’. These opportunities are collated by our various Careers Consultants so make sure to check them out. I wish I was more proactive in my first and second year when it came to looking at internships and trying to balance various deadlines.  

Often when we’re so focused on KCC, we forget about the King’s Careers & Employability KEATS page. I definitely did not use this as much as I should have. Here I will explain the difference between the two: while KCC is our booking platform, KEATS is our e-learning platform and they are both on different sites. Finding the KEATS page is fairly straightforward, if you keep scrolling past your modules on KEATS, you should be able to find it. When you click on the module on KEATS, you will come to a section that says Discover, Focus and Action. Understanding which phase you’re at which will help if you research will allow you to use the Careers service in a way that is helpful for you. In the tab on the left, there will be different resources depending on what kind of student you are , as well links to #MyNextSteps events which are about what to do after graduating, upcoming events/ event  recordings, industry information and sector guides, as well as LinkedIn Learning Courses which I did not know we had access to – but are no doubt highly valuable and something you can attach to your own LinkedIn account when completing a course in whatever you’re interested in.  

I also recommend accessing King’s CareerConnect and the KEATS page via a PC/ laptop as it is easier to navigate the website from here as opposed to your phone as you’re able to see everything clearly. Furthermore, the industry information and sector guides have all the relevant information you need depending on what you’re interested in so make sure to check that out as there are multiple links to places where you can research job opportunities on alternative websites. 

Furthermore, regarding the practice interview system, this will be available on KEATS via Shortlist.Me which will provide mock online assessments and interviews. A practice interview is an hour/ 40 minute long appointment to help you prepare for an interview. You will also have the chance to practice interview answers and techniques with the help of a career consultant. The practice interview is a safe learning space that is there to support your unique situation- and the session can be changed to suit your needs so you can get the most out of your appointment.  

The CV checker is available via KCC providing content the student goes through in a linear order before having the option at the end to upload their CV and have it checked by an application advisor where they receive some feedback. This will be available from September onwards.  

If you ever have any questions regarding this whole process, always try to get in touch with the Careers service as they will do their best to help and guide you!  

Haleema Ayyub
Communications and Engagement Intern
Part of King’s Careers and Employability

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.