To lawfully lend money, a moneylender needs to be approved by the Financial Conduct Authority (FCA). Without FCA authorization, money lenders are in violation of the law. They’re referred to as “loan sharks.”
Loan sharks frequently operate from home, impose exorbitant interest rates, and provide no documentation to support the agreements they’ve reached with you. Loan sharks typically have a large clientele and operate illegally when they lend money.
Loan sharks frequently threaten violence, seize your credit cards or possessions, among other unlawful actions, to get back the money they’ve lent you. In extreme situations, they have been known to coerce non-payers into peddling drugs and prostitutes.