With millions of consumers in the UK finding it difficult to meet monthly bills it is inevitable some will fall foul of the 'loan shark'. If you know of someone that has or is about to use this facility then it is important you steer them to this article first.

What is the definition of a loan shark?

According to the English thesaurus a 'loan shark' is a 'swindler', 'crook', 'double-dealer' or 'con artist'. I can't really argue with that but what is clear is that within the law a 'loan shark' is an unlicensed moneylender. This is someone or a firm that has lent you money and is not licensed by the Office of Fair Trading, often referred to as (OFT).

A person or firm can only legally lend money if they are licensed and regulated by the OFT and they must also follow the OFT's strict codes of practice.

By going to a loan shark you may experience some or all of the following;

• You pay a very very high rate of interest
• You get a loan on terms that suits the lender and not you
• You may be put under pressure to borrow more to pay off another debt off as this makes more money for the loan shark.
• You may be harassed or intimidated if you get behind with your repayments.

Remember loan sharks are not licensed therefore they operate outside the law.

How do you find out if a lender is licensed?

The OFT has recently formed a 'Consumer Credit Public Register' that lists everyone with an OFT licence. This will also include anyone that has previously applied for one or has had one taken away or suspended. The register will also detail trading names and the activities for which a business is licensed.

You will not be charged to gain access to this information, it's free.

You can search the 'Consumer Credit Public Register' by either visiting