Question

I need some help. I am in debt but to just one person who visits my neighbourhood and lends money. The interest rates are very high, I don’t even know how much they are. I borrowed £500, and every time I make a payment, the balance is not going down. He keeps saying I still owe him more money, and he gets threatening. I know it is my own fault, but I cannot continue to pay him each week and not get out of this debt. I need some advice.

Answer

Hi,

I do understand your situation, and from what you have stated it sounds like the person who lent you money is a loan shark.

Loan sharks prey on people who need to borrow money, but may not be approved through main stream lenders. They charge outrageous fees, interest rates, and make it so you can rarely get out of their debt.

They also can use threatening or intimidating tactics to collect the debt.

Loan sharks are illegal, they are not regulated through the FCA/Financial Conduct Authority.

Your options are to either pay the debt in full in one payment, which even then the loan shark may add on fees and charges, which you cannot pay.

You can also report the person to the Illegal Money Lending Team, and also the police. I know reporting someone is a difficult decision, but it can be done anonymously, and it may be the only way to stop the cycle of debt you are on.

Regards,

Jon

Leave a Reply

Your email address will not be published. Required fields are marked *