How loan shark threats keep victims like me silent

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.

'I want it now or you are gonna be hurt'

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".

"There is always some sort of control measure by the loan shark to get you to pay," he said.

We joined Benbow's team on a dawn raid in Bristol following a tip‑off from a member of the public more than a year ago.

After months of covert work and digital forensics, officers arrested a suspected loan shark believed to have taken up to £750,000 from about 200 victims. Documents including passports were seized.

In figures shared exclusively with the BBC, the IMLT said it received 597 reports to its Stop Loan Sharks service in the past year. There were 33 arrests and six convictions.

However the number of loan sharks is thought to be much higher. Recent research by debt organisation Fair4All Finance estimated 1.9 million people had used an illegal money lender in Great Britain in a 12-month period.

Asked about why the number of convictions was so low, the IMLT said it could take "many months" to build a successful case, adding that many suspects would be cautioned and served with cease-and-desist notices rather than court action.

Benbow said his team heavily relied on borrowers reporting loan sharks to enable them to investigate and prosecute, but that not everyone who called them for advice was willing to share detailed information.

The IMLT has found loan sharks have increasingly moved online since the Covid pandemic, meaning raids often uncover no cash and victims are now found up to 60 miles apart rather than within the same neighbourhood.

As part of this investigation we contacted several loan sharks who advertise their services on social media. Within a couple of taps we were being offered between £1,000 and £3,000.

In some cases lenders were posing as legitimate loan firms, but when we started asking questions about what would happen if we were late repaying, we were told it "would add interest". One simply wrote: "We will take action against you."

The loan sharks demanded copies of the prospective borrower's driving licence, utility bills and screengrabs of online banking.

This type of unregulated lending is illegal. For people who need help with a small loan, both Citizens Advice and the FCA suggest contacting your local credit union.

'The threat is very real'

Paul, not his real name to protect his identity, has been living in fear for the past few years after a knock at the door of the family home in West Yorkshire.

The nightmare started when his son borrowed £30 for a round of drinks from a so-called friend - and then a small amount more cash on a few other occasions.

"Somebody turned up at our door... very quickly it turned into 'your son owes me money - he can't pay but somebody needs to pay and that's why we're now talking to you'," said Paul.

He said he was left with no choice but to empty bank accounts, savings accounts and use credit cards to pay more than £5,000 in cash as the loan shark's interest rate caused the debt to soar.

He later turned to the police for help, but "got nowhere".

West Yorkshire Police said it was unable to progress the report due to a lack of evidence.

"All of the advice, all of the people that you could turn to say, 'don't pay'. But… you'll find a way because you feel as though you've got to make the pain go away," Paul said.

The situation got worse when Paul's other son was targeted by the same group.

"They knew what they were doing," Paul said.

"They don't say I'm going to hurt you - something will happen to your house… but they are there in your space. That threat is very real."

Source: Money Helper, FCA

Paul has installed CCTV cameras throughout his home and even avoids being in the home alone, living in fear that they might come again.

He has now paid more than £20,000 to loan sharks "with nothing to show for it".

"Would we pay again?," asks Paul.

"I'd say we probably would, because you look after your own."

Additional data reporting by Jonathan Fagg.