Police in Peterborough have teamed up with the England Illegal Money Lending Team (IMLT), who are also known as Stop Loan Sharks, to target loan sharks operating in areas of central Peterborough.

The IMLT, which was set up in 2004, investigates and prosecutes illegal money lenders while supporting those who have borrowed money from a loan shark.

It is estimated that there are 1.08 million people in debt to illegal money lenders in England.

A loan shark, or illegal money lender, is someone who lends money without authorisation from the Financial Conduct Authority (FCO). They are not bound by rules that exist to protect borrowers.

Signs of an illegal lender include:

  • Pretending to be a friend at first, offering to lend money as a favour
  • Being given no paperwork or details about the loan
  • Being told to make repayments that add up to much more than you initially borrowed
  • Being intimidated or threatened if you struggle to make repayments
  • Being told to hand over items such as bank cars or a passport until you can pay

Inspector Lyndsay Mylchreest, Neighbourhood Policing Inspector for Peterborough, said: “With the general cost of living issues faced by communities, use of facilities such as food banks has been increasing and 90 percent of all legal loans are refused, as such there is a concern around where people are obtaining additional much-needed funds from.

“There is little reported to police or partner agencies regarding illegal money lending, therefore we are seeking to raise awareness of the issue, increase reporting of illegal activity, and provide support to services such as credit unions via Stop Loan Sharks.”

Throughout next week, neighbourhood policing officers, staff and volunteers will be joined by the IMLT in the ‘Alliance’ area of Peterborough, which covers Millfield and part of the city centre, to raise awareness of the issues and support available.

Since they were set up in 2004, Stop Loan Sharks has supported more than 32,000 people, written off more than £91.3 million worth of illegal debt and secured more than 424 prosecutions for illegal money lending, leading to 600 years in prison.

In 2023 alone, the organisation supported almost 800 people who had borrowed from loan sharks, helping them escape the clutches of their lender. Of those, 17 percent borrowed more than 10 times and 14 percent did not remember exactly how many times they’d borrowed, showing how people can end up in a cycle of borrowing again and again to repay what they owe.

Dave Benbow, IMLT acting head of service, said: “We will not tolerate illegal lending, and we will continue to do everything we can to stop these lenders. Our ultimate aim is to make communities safer and protect the most vulnerable. We can only do this with the help of our partners. Together, we have had a powerful impact over the past 20 years, and we want to build on that.

“We realise it can be difficult for people who have borrowed to come forward, but we want to reassure anyone in that position that we are here to help and not to judge. We’d urge anyone who had any knowledge of illegal lending, or who needs support, to get in touch with us in confidence.”

Anyone who has been affected by illegal money lending should call the Stop Loan Sharks 24/7 confidential helpline on 0300 555 2222 or access support online at www.stoploansharks.co.uk. Live Chat is available on the website from 9am to 5pm, Monday to Friday.