Sunderland City Council has become the first council in England to receive the Stop Loan Sharks Partner Plus Award for its work protecting residents from illegal money lenders.
The council has become the first local authority in the country to earn the Stop Loan Sharks Partner Plus Award from the England Illegal Money Lending Team (IMLT).
According to the Centre for Social Justice, around 1.7 million people in England—almost three per cent of the population—are currently borrowing from illegal money lenders. Based on those figures, an estimated 8,000 people in Sunderland could be relying on loan sharks and facing excessive interest rates.
To tackle the issue, the council has launched awareness campaigns, strengthened partnerships and delivered targeted initiatives, ranging from social media outreach to community engagement, to educate residents about the dangers of illegal lending and promote safer financial alternatives.
Cabinet Member for Culture, Tourism and Heritage, Councillor Ciera Hudspith, said: “When people are under financial pressure, it’s essential they have access to safe and affordable options. Illegal money lenders take advantage of difficult situations and are not a quick and easy fix if people are worried about their bills.
“These loan sharks are not helping residents—they are exploiting them. This can have a devastating impact on individuals and families, and it’s vital we continue raising awareness of the dangers while ensuring people know where to find support and safer alternatives.
“On behalf of colleagues and partners across the city, we’re proud to receive this Partner Plus Award in recognition of the work being done to protect residents and remind them there are far safer choices than turning to a loan shark.”
The award follows the council’s signing of the Stop Loan Sharks Partner Charter, with 36 organisations across Sunderland committing to work together to raise awareness of illegal lending, tackle loan shark activity and support affected residents.
A major part of the council’s strategy has focused on improving access to affordable credit and savings by promoting trusted alternatives such as credit unions.
The campaign also includes community events designed to educate residents about illegal lending, including sessions for young people at the Sunderland Fans Museum.
Money confiscated from convicted loan sharks is being reinvested into local communities. A £1,600 contribution from the IMLT, combined with a £500 council grant, has funded new equipment for Leisure United Football Hubs in Washington, Downhill and Ford.
Cllr Hudspith added: “These initiatives combine prevention, education and community engagement, helping residents recognise the risks of illegal lending while connecting them with trusted sources of support.”
Anyone affected by illegal money lending is encouraged to seek confidential support.
Dave Benbow, Head of the England Illegal Money Lending Team, known in communities as Stop Loan Sharks, said: “Sunderland City Council has shown a strong and ongoing commitment to tackling illegal money lending and helping residents access safe and affordable financial options. This award recognises the real impact of its work in raising awareness and strengthening partnerships across the city. We are grateful for the council’s continued support and look forward to working together to keep Sunderland’s communities safe.”
A loan shark is someone who lends money without authorisation from the Financial Conduct Authority (FCA). Unlike regulated lenders, illegal money lenders operate outside consumer protection laws. While they may initially appear friendly and present loans as a favour, they often impose excessive charges and can resort to threats, intimidation or violence to recover repayments.
Common warning signs include receiving no paperwork or loan agreement, being asked to hand over personal items such as a bank card or passport as security, or being threatened or pressured into making repayments.
Anyone who believes they, or someone they know, has borrowed from a loan shark can access free, confidential and non-judgemental support through the Stop Loan Sharks team.
How to get support:
- Stop Loan Sharks 24/7 confidential helpline: 0300 555 2222
- Online: www.stoploansharks.co.uk