Loan sharks

Typically a loan shark:

• Won't have a consumer credit licence. These are required by law - Check if a lender has a licence
• Won't give you a written credit agreement. Written agreements are also required by law. They must be signed by borrower and the lender and must contain certain important information such as the rate of interest, the amount of each repayment and how many repayments must be made.
• Will charge you a very high rate of interest.
• Will be involved in other criminal behaviour.

Examples of loan sharks:

• Local money lenders who prey on low income families and individuals who often take out small loans frequently, but end up being charged very high rates of interest.
• Car dealers who sell loans as part of their business but don't have a licence.
• Employers who provide their employees with loans and/or advances on salaries or wages and require the employee to pay back the money with interest and/or in more than four payments.