Defeat Loan Sharks with Dave – Save with Dave

- by Sarah Connelly

Do you think you may have been bitten by a loan shark? Loans sharks are scary! In this article Dave from Cashfloat will help you identify who is a loan shark and what to do if you have been bitten by one.

Cashfloat teach payday loan consumers how to avoid loan sharks.

Hi folks, it’s Dave from “Save with Dave”. Today, I am going to teach you how to kill a shark in five easy steps! Did you think I meant a real shark? Well, these types of sharks are almost as dangerous as real sharks, as they can also harm you for life. The sharks I am talking about are loan sharks.

What are Loan Sharks?

When someone cannot get a loan from a legal company, they may get desperate and turn to illegal lenders for help. These illegal lenders are called loan sharks. Loan sharks often target low income and desperate families. For example, they may offer loans for unemployed people without checking that they have a way to pay their loan back. Even though they might seem friendly at the beginning, borrowing from a loan shark does not normally end well. Even if you have bad credit, or you only need a small amount of money for a small amount of time, don’t ever use a loan shark. There are other alternatives to payday loans that you can use.

Where can you find loan sharks

Where do these loan sharks lurk? Well, you won’t find these sharks at the beach – that’s for sure. In fact, you need to beware of these sharks in the place you likely spend the most time: The Internet!

We already know that the Internet can be a dangerous place. Perhaps you have installed a program that tries to help you defend yourself. The problem is, loan sharks don’t often show their sharp teeth on their online platform. You may think that you have clicked on a normal instant cash loans site, when in fact, the people on the other side of the screen are the last people you want to be dealing with! Sound scary? I know.

Dave fights loan sharks and explains how to identify a good lender

Last night, my grandma asked me “How many teeth does a loan-shark have? Probably far more than me!” Well that got me thinking… What do loan sharks look like? How can we identify a loan shark before our private information – and money – gets eaten alive?

5 Things you Need to Know to Avoid Loan Sharks

Let me give you some golden rules that will keep you out of trouble. When applying for a loan online you are going to want to follow this “Safe with Dave checklist:”

Protect yourself from loan sharks - cashfloatLook for FULL contact details. If you can’t find the full contact details of the lender instantly (phone, email and address), it is a big warning sign. After all, legit companies want their clients to contact them. Many sharks may hide their contact details in the legal policies or in other pages that no one ever reads.

Protect yourself from loan sharks - cashfloatSearch for the FCA authorisation number. If there is no clickable FCA authorisation number to validate the company and the website, be careful. Many illegitimate companies may put the number in small white fonts or as a picture. In these cases, Dave says: If you can’t click it, leave it. If you want to see an example of a proper FCA authorisation number, scroll down to the footer of this page and click on the FCA Authorisation number. You will see that it will direct you to the FCA website where you will see our full authorisation details.

Protect yourself from loan sharks - cashfloatAre you dealing with a broker or a direct lender? If the company is not proudly announcing if they are a broker or direct lender, they are probably a broker that you don’t want to be working with. Make sure you can tell if the website is a broker or a direct lender. There is a big difference.

Protect yourself from loan sharks- cashfloatAvoid Cold calls and spam! No reputable lender or broker will cold-call you with an amazing loan offer. If you get an unsolicited email or call, just say Thank you and hang up the phone. That is, if you are feeling polite – they are sharks after all.

Protect yourself from loan sharks- cashfloatHere is a shark sign to look out for. If the website does not have HTTPS (the secure connection) on the URL bar of their browser, or if someone is using complicated language to make things less straightforward, or if you can’t clearly understand the product you are about to purchase (a loan), it is probably a shark. Stay away!

Protect yourself from loan sharks - cashfloat

Is loan sharking illegal?

Cashfloat advise about loan sharks

Loan sharks in the UK are illegal. They are not regulated by the FCA and therefore aren’t authorised to lend. In addition, Loan sharks will often take illegal action to get hold of the money they have lent you. This can range from taking your personal possessions, vandalism or even threatening violence. We have even made a super cool infographic about fighting loan sharks, just for you! If you need more help with spotting or fighting loan sharks, feel free to contact us!

Thank you for saving with Dave!

How to stop loan shark harassment

If you are the victim of a loan shark in the UK, you should seek help immediately. Getting the right help will ensure that you are physically and financially safe, as well as ensuring that end end is put to the illegal lending activities of the loan shark. By clicking on the links below, you will find help for various cities in the UK. Stop loan sharks today!

Cashfloat advise about loan sharks

Loan sharks summary

Loan sharks are illegal. When applying for a payday loan, you may find some websites which are not legit. Loan sharks generally operate on the web. Keep away from those. Make it your business to research a short term loan company before you use them to make sure they are FCA regulated. If you suspect a company of being illegal then you should follow the protocol of where you live. Loan sharks can sometimes take illegal action. Call the police if you think you are being threatened by loan sharks.

loan sharks - cashfloat
About The Author
Sarah Connelly
Sarah is an enthusiastic writer, blogger and an eager agent of change. After completing her degree in Computer Science in one of London’s esteemed universities, Sarah’s early career in programming left her creatively frustrated. Looked for a way to combine her creative and analytical side, Sarah’s search led her to Digital Marketing and now she writes content and code for Cashfloat. Sarah enjoys spreading awareness about common financial issues and the importance of money management. With her STEM background, Sarah believes strongly in ethical business management and consumer protection. in her free time, Sarah enjoys reading, watching movies and eating out. After all, #YOLO!