The Dark Side of Borrowing: Tackling Loan Sharks and Promoting Responsible Lending 

August 1 2023

In recent times, the rise of loan sharks has been a cause for concern, particularly amid the ongoing cost of living crisis. The increasing vulnerability of individuals has made them an easy target for these unscrupulous lenders, who resort to intimidation, violence, and astronomical interest rates to exploit those in need. At Lendology CIC, we firmly believe in ethical lending practices and are committed to supporting homeowners in the community. In this blog post, we shed light on the perils of loan sharks and emphasize the importance of regulated lending. 

The Exploitative Tactics of Illegal Money Lenders 

Publications have highlighted the heart-breaking stories of those who fell victim to illegal money lenders. Claire, a desperate individual, found herself entangled with a suspicious lender after mentioning her financial struggles to a fellow parent at her children’s school. The consequences of borrowing from these unregulated sources can be dire, with more than half of victims resorting to such loans to meet basic needs like food and fuel. 


“The Independent” – Intimidation, violence and endless debt: how loan sharks are circling the cost of living crisis – Read More 

High-Stakes and High-Interest Rates 

Loan sharks like Alan Hayden and Mantas Daujotas operate outside the legal framework, preying on vulnerable individuals with no regard for their well-being. These lenders often charge exorbitant interest rates, leaving borrowers in endless cycles of debt and fear. Authorities like the England Illegal Money Lending Team have been vigilant in pursuing these offenders, but the problem persists. 


“Liverpool Echo” – Loan shark ‘didn’t care’ how he got his money after charging 100% interest – Read More 

“Derby Telegraph” – Burton loan shark who fled to Lithuania ‘kept passports’ of those who owed him cash – Read More 

The Pain of Soaring Prices 

As the cost of living continues to rise, the allure of quick, unregulated loans becomes stronger for some individuals. Illegal moneylenders exploit this desperation, leading to a vicious cycle of debt and intimidation. D and M, active loan sharks in the UK, demonstrate how the lack of regulation allows them to enforce repayment using fear and coercion, causing significant harm to borrowers and their families. 


“BBC News” – The loan sharks profiting from the pain of soaring prices – Read More 

Emphasizing Responsible Lending and Regulation 

At Lendology CIC, we recognise the critical importance of responsible lending and regulation. As a certified Social Enterprise lender, we are authorised and regulated by the Financial Conduct Authority (FCA). We abide by strict ethical guidelines to ensure that our lending decisions prioritise the well-being of our borrowers.  

Loan sharks represent a dark side of borrowing that continues to exploit the financially vulnerable, causing immense harm to individuals and their families. At Lendology CIC, we stand against such practices, offering a safe and regulated alternative for homeowners in the community. We urge individuals in need of financial support to reach out to responsible lenders, and we are proud to be a part of the effort to combat the menace of loan sharks. 

Remember, all lenders must be regulated by the FCA, and you can check a lender’s status on the FCA’s website ( If you suspect illegal money lending activity or are a victim, confidential advice and support is available from the Illegal Money Lending Team. Call the Stop Loan Sharks 24 Hour Helpline on 0300 555 2222 or visit the website for more information at Together, we can make a difference in the fight against loan sharks and promote responsible lending for a more secure financial future. 

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