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POLITICO Politics1 min read
How loan shark threats keep victims like me silent
TL;DR
Illegal money lenders in England use intimidation tactics, including threats of violence, to silence victims. The Illegal Money Lending Team (IMLT) is working to track these loan sharks but faces challenges due to fear among potential whistleblowers.
Key points
- Loan sharks charge illegal interest rates and intimidate borrowers
- IMLT tracks down loan sharks through public tip-offs
- Victims fear violent repercussions for reporting loan sharks
- Some lenders pose as friends to exploit vulnerable individuals
- Victims can suffer severe mental health consequences
A samurai sword, a meat cleaver and babies' passports are among the items seized in raids by illegal money lending investigators - who have given the BBC rare access into how they track down loan sharks.
Loan sharks illegally charge crippling interest rates and intimidate those who borrow money from them.
England's Illegal Money Lending Team (IMLT) relies on public tip-offs to identify suspects, but people have told the BBC they are often frightened to report loan sharks for fear of violent repercussions.
David Benbow, who leads the IMLT, has seen first-hand why people are so reluctant to come forward and has even seen a rise in lenders posing as friends or acquaintances - blurring the line between help and exploitation.
Sarah, not her real name to protect her safety, became homeless and tried to end her life several times after being threatened by loan sharks.
She has only recently finished paying £20,000 of debt repayments after borrowing less than half that amount.
The 28-year-old first got in touch with one loan shark via social media after she was turned down for a credit card. The agreement was, if she borrowed £50, she would repay £100. Though she soon found out that if she was late or missed repayments it would get worse.
"[I was] feeling under pressure of paying an amount that I couldn't afford," she said.
Sarah, from Yorkshire, had no idea what her loan sharks looked like, but they knew everything about her after she sent photos of her utility bills in what she believed was a legitimate registration process, unaware her lender was not regulated by the Financial Conduct Authority (FCA), as is legally required.
"I didn't realise at the time how deep I'd actually get into the debt and how much of a repercussion could come of it, until one month when I couldn't afford the full amount... and that's when I knew that, oh, he's got my address... they could come and do something," said Sarah.
Sarah began receiving threatening messages such as "I want it now or you are gonna be hurt".
Sarah said a decline in her mental health, a need for medication and growing vulnerability left her open to exploitation.
"When I look back, I'm filled with shame," she said. "Why did I let it get to that point?"
As the pressure became overwhelming, Sarah tried to end her life, describing how the threats left her feeling trapped.
She said some of her friends had taken their own lives after accumulating thousands of pounds in loan shark debt that their families knew nothing about - with the fear of being labelled a "grass" keeping many victims silent.
Benbow, who leads the IMLT from Birmingham, flips through a folder of evidence which contains gold jewellery and various passports, including for babies, which can be used to stop people from travelling, accessing employment, or "anything where you need some form of physical ID".
Q&A
What tactics do loan sharks use to intimidate victims?
Loan sharks use threats of violence and coercion to intimidate their victims, often leading to severe emotional distress.
How does the Illegal Money Lending Team (IMLT) operate?
The IMLT relies on public tip-offs to identify illegal money lenders and conducts raids to seize evidence against them.
Why are victims afraid to report loan sharks?
Victims fear violent repercussions and intimidation from loan sharks, which discourages them from coming forward.
What impact do loan sharks have on their victims' mental health?
Victims often experience severe mental health issues, including homelessness and suicidal thoughts, due to the pressure and threats from loan sharks.
