Leeds Organisations Unite to Tackle Loan Sharks ⋆ Leeds Star

Leeds City Council and key organisations across the city have signed a charter pledging to work together to combat illegal money lending.

Representatives from advice agencies, third-sector organisations and statutory services gathered at Leeds Civic Hall to share information about ongoing initiatives and discuss best practice for protecting residents from loan sharks. The charter aims to strengthen cooperation between local services, improve awareness of the risks associated with illegal lending and ensure that people affected can access appropriate advice and support.

Unlike legitimate lenders, loan sharks are not authorised or regulated by the Financial Conduct Authority. They often provide quick cash with little or no paperwork, but borrowers can quickly find themselves trapped in escalating debt. Illegal lenders may charge extremely high interest rates and use threats, intimidation or harassment when repayments are missed.

Around 60 organisations attended the event, which was hosted by the England Illegal Money Lending Team, also known as Stop Loan Sharks. Representatives signed a pledge committing their organisations to supporting the team’s work and raising public awareness of the risks posed by illegal lenders. Speakers from the Illegal Money Lending Team provided updates on recent investigations and prosecutions, as well as outlining the support available to people affected by loan sharks.

The event also heard from national debt advice charity StepChange, which is based in Leeds. A representative explained how the charity supports people experiencing debt and wider financial difficulties. StepChange already works closely with the Illegal Money Lending Team to identify people who may have borrowed from loan sharks and connect them with specialist advice and support.

Attendees also watched a powerful video testimony from a West Yorkshire father, who described the devastating effect that borrowing from a loan shark had on him and his family. Leeds City Council’s financial inclusion team and housing officer Jason Phillips were also recognised by the Illegal Money Lending Team for their work in helping to tackle illegal lending and support those affected.

Councillor Asghar Khan, Leeds City Council’s executive member for housing and hubs said:

“This meeting was a valuable opportunity for us all to come together in our work to stop loan sharks, and it was great to share best practices, learnings and successes.

“Illegal money lenders target vulnerable people in our communities, people who are desperate and don’t realise who they are borrowing from.

“By signing this charter we are showing our commitment to combat illegal money lending and help people see the signs and get the help they need.”

Dave Benbow, head of the England Illegal Money Lending Team said:

“It was fantastic to see so many frontline organisations from across Leeds come together to support the fight against loan sharks and the work being done to keep communities safe.

“We know illegal lenders operate in local communities and are often well known. Many people don’t even realise they have borrowed from a loan shark – they believe they’ve simply borrowed from someone they know or trust. Unfortunately, that can quickly lead to threats, intimidation and misery.

“Loan sharks target some of the most vulnerable people in our communities, causing financial and emotional harm. Many of the organisations represented at this event will come into contact with people affected by illegal lending in their day-to-day work. By working together, we can help them spot the warning signs and ensure people get the support they need.”

Warning signs of a loan shark include: