Do these apply to you?
Spotting a Loan Shark
Only borrow from a licensed lender
If you need some extra money to buy something new, or have debts that you want to consolidate you need to think carefully about where you should get that money.
There are various rules and laws on the way money can be loaned and the Office of Fair Trading can advise if a company is licensed to be a lender.
If the company in question is not on the list, then it should be avoided.
What's the catch?
Unlicensed lenders, sometimes known as loan sharks, will offer money to those in need of cash. However, there is always a major catch - how much has to be paid back. The terms on offer will usually be very poor. There are many cases of people borrowing a small sum of money and paying double or triple that original sum in interest.
If you've had great difficulty getting a loan, don't be tempted by someone who comes to the door with what might seem like a good deal. Check the small print. Don't sign anything straightaway and always take advice if you're in any doubt. Anything that seems too good to be true, often is.
Often the best place to start when it comes to looking to raising money is your own bank or building society, but shop around as the loans market is highly competitive.
You should always look for a lender who is reputable and before you sign anything check the small print so you understand fully what the conditions are. If you are unclear about the loan and the amount of interest you will pay, ask the lender the appropriate questions.