Warrington MoneyBox The Gateway to Warrington Credit Unions
Warrington MoneyBox The Gateway to Warrington Credit Unions

Pay Day Loan Companies & Loan Sharks

Pay Day Loan companies charge high interest rates that can push some people into real financial difficulties. Avoid them at all costs.

"We always refer people to the credit unions, it makes real financial sense to save and to get affordable loans" - Steve Cullen - Warrington Citizens Advice Bureau

Loan sharks are illegal lenders who often target low income and desperate families.  They may seem friendly at first but borrowing from them is never a good idea - even if your credit rating is poor or you only need a small amount for a short while.


To report a loan shark

Call the 24 hour 7 days a week confidential hotline on 0300 555 222

Follow our link for up-to-date news about work going on to try to stamp these lenders out! 

Click here for the latest newsletters

Loan Shark Newsletter 2013

Loan Shark Newsletter 2012

Money Lending  

Home credit or doorstep lending  is a type of credit, which compared to other types of borrowing is very expensive and for this reason should be avoided if at all possible.  Loans are often for small amount and are often delivered and collected by an 'agent' which can be very convienient - but these loans come with high interest rates, in some cases the rate can be as high as 1,500% (no this is not a typing error!).  With interest rates this high such a loan is likely to add to your problems instead of helping them. 

Pay Day Loans

Pay day loans are short term loans designed to offer small amounts of money (typically between £50 - £800) which is paid back usually over 1- 2 months.  They can offer you a loan for unexpected expenses but they are very expensive.  Additionally if you can't pay back the loan the fees and interest will soon mount up often leaving people with unmanageable debt as well possibly having a major effect on your credit rating and your ability to borrow in the future.

Logbook Loans

These loans are secured on your vehicle, so the lender owns your vehicle until you pay the loan back.  You can keep your vehicle as long as you repay the loan, however they are expensive and risky and should be avoided.  Again these loans are very expensive.  If you have a low income and you need a small amount for a short time you should contact your local credit union

Many of these firm are not illegal, all home credit lenders have to be licensed by the Office of Fair Trading and you should always ask to see their license should they call, if they haven't got one they are a loan shark and need reporting.

Use our link to check the Credit Register on the Financial Conduct Authority website



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