Unlawful Loan

Glossary

Banking

Unlawful Loan

An unlawful loan is a loan extended by an unauthorised lender a.k.a. a loan shark. In the UK, lenders must be authorised by the Financial Conduct Authority. Unlawful lenders operate on the basis of little or no paperwork, very high rates of interest and, typically, illegal methods of collecting loan repayments, including threats of or actual violence, or removal of property.

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