There are many loan companies which are not legitimate and can ultimately leave you in a worse financial position.
There are different types of illegitimate loan companies such as:
Bogus loan companies and fake credit brokers often target those with poor credit ratings. People who apply for the loan are told to pay an upfront fee. Once this fee has been paid, the promised loan never materialises and the fraudster keeps the cash and is never heard from again.
You can read more information on loan scams here.
You can report a bogus loan here.
Alternatively, you can call Action Fraud on 0300 123 2040 .
If you require advice, please contact the Trading Standards Team.
A loan shark is someone who lends money to people without the required licence issued by the Financial Conduct Authority.
You can read more information about loan sharks and their tactics here.
If you are able to answer yes to any of the questions below then you may have been in contact with a loan shark:
When you report the loan shark, it will be confidential and you can report anonymously.
For more advice, you can contact the Trading Standards Team.
You can use the Consumer Credit Public Register to check lenders or call 020 7211 8608.
The register shows
Payday loans are small sums of money paid over a short period of time and are available from high street shops and internet sites. Lenders usually hold a Consumer Credit Licence but charge very high interest rates.
If you decide to get a payday loan then make sure you shop around and are fully aware of all the charges before you borrow any money.
There may be other ways for you to resolve a short-term money problem including: