When times are tough, a quick loan can feel like the only way out. But not all lenders have your best interests at heart. Exploitative money lending—where people are charged unfair rates or pressured into borrowing—continues to harm communities across the UK.
At Lendology, we believe in a fairer way to lend. This article explains what exploitative money lending looks like, how to avoid it, and what safer options exist for homeowners.
What is Exploitative Money Lending?
Exploitative money lending happens when a lender takes advantage of someone’s financial situation. This often involves:
- Very high interest rates
- Hidden or unclear fees
- Lack of paperwork or official agreement
- Pressure to borrow quickly
- Aggressive behaviour when collecting repayments
This kind of lending can leave people stuck in a cycle of stress, debt, and fear. It’s sometimes linked to illegal lending, but even some regulated lenders may push people into unaffordable debt with unclear terms or unfair practices.
How to Spot an Unfair Loan
Here are some common signs that a loan may not be safe:
- No clear repayment plan or written agreement
- You’re told not to tell anyone else about the loan
- The lender isn’t listed on the Financial Conduct Authority register
- You feel rushed or pressured to borrow
- Payments must be made in cash or in person
- You don’t fully understand the total cost of the loan
If something feels off, it probably is. Always check that a lender is authorised and that you understand all the terms before borrowing.
A Safer Way to Borrow: Meet Lendology
At Lendology CIC, we do things differently. We’re a social enterprise lender, working in partnership with local councils to offer responsible loans to homeowners who need help with:
- Home repairs and improvements
- Heating and insulation upgrades
- Renewable energy installations
- Property adaptations
We are regulated by the Financial Conduct Authority, and our lending is built around people, not profit. You’ll get:
- Clear terms, explained in simple and accessible language.
- No hidden charges
- Friendly, non-judgemental service
- Flexible support if your situation changes
Interest rates and loan eligibility vary depending on your local council. You can check your options here:
Why This Matters
Exploitative money lending ruins lives. It targets people in need, often offering short-term help but causing long-term harm. By choosing a responsible, regulated lender, you can improve your home and protect your finances—without falling into a debt trap.
We’re proud to offer a safe, ethical alternative backed by local councils. If you’re considering a loan for essential home improvements, talk to us first.
01823 461099
loans@lendology.org.uk
www.lendology.org.uk
Final Thoughts
If you’re worried about exploitative money lending, you’re not alone—and you don’t have to face it without support. Lendology is here to help you borrow safely, make improvements to your home, and avoid the risks of unfair loans.
Together with our local council partners, we’re building stronger communities through fair finance.
