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Youth Legal
Debt and Money Advice, Dealing with Debt· 3 min read

Money borrowed from a 'friend'

If someone you know has lent you money and is now threatening you, charging unfair interest, or taking your bank cards or documents, they may be an illegal lender (sometimes called a loan shark). You have rights, and we can help you safely.

If someone you borrowed from is threatening you

If you've borrowed money from someone you know and the situation has turned frightening, you are not in trouble. What's happening to you may be illegal, and there are people who can help. You don't have to deal with this alone.

When is it more than just a debt?

Borrowing money from a genuine friend or family member is classed as a non-priority debt. That means not paying it back does not usually lead to losing your home, going to prison, or having essential services cut off.

But sometimes the person who lent you money is not really a friend. They may be an illegal money lender, sometimes called a loan shark. This can happen even if they seemed friendly at first.

Signs that something is wrong

If any of the following sound familiar, the person who lent you money may be operating illegally:

  • There is no written agreement for the loan
  • They are charging extremely high or unclear interest
  • They are threatening, intimidating, or harassing you
  • They have taken your bank cards, passport, or benefit details
  • They demand repayment at unreasonable times
  • They pressure you to borrow more
  • They collect repayments weekly in cash

It's common to feel ashamed or scared in this situation. You might describe the person as a "friend" because you're worried about what will happen if you speak up. That reaction is completely understandable.

Your rights

This is important to know:

  • Loan sharks operate illegally. They are breaking the law, not you.
  • They have no legal right to enforce the debt. A court will not make you pay back money owed to an illegal lender.
  • You have legal protection. The law is on your side.
  • Support is available, and you can report what is happening confidentially.

What you can do

If you feel unsafe right now, call 999.

If you want to report an illegal lender, you can contact the Illegal Money Lending Team (IMLT). This is a national team that investigates loan sharks in England. You can report confidentially:

You can also contact the police on 101 if you are not in immediate danger but want to report threats or intimidation.

Talk to us. We can help you understand your options, support you through reporting, and make sure you're safe.

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