Collaborating to tackle illegal money lending and financial harm

StepChange frequently supports clients who are the victims of illegal money lending, but cases can be difficult to identify. Research conducted by IMLT in 2026 highlighted opportunities to improve identification and support of victims.

Since then, StepChange and IMLT have worked closely together to strengthen interventions for clients experiencing this form of harm. The partnership is focused on three shared goals:

• Improving identification of illegal money lending
• Enhancing advice and access to specialist support for affected clients
• Strengthening sector-wide understanding through data sharing

By combining frontline debt advice expertise with specialist enforcement knowledge, the partnership is helping to take the power away from loan sharks.

StepChange and IMLT work collaboratively to tackle illegal lending, driving operational improvements and national awareness.

IMLT guidance informs StepChange colleague training, equipping advisors with the knowledge and confidence to better identify illegal lending. This has improved recognition of warning signs and strengthened safeguarding responses across the organisation.

StepChange delivers regular call listening sessions for IMLT, in which client conversations reporting illegal lending are assessed. These assessments help develop communications that reflect the way StepChange clients understand and articulate illegal lending.

Both organisations mutually support each’s awareness campaigns. StepChange contributes to the annual Stop Loan Sharks Week through coordinated communications activity, while IMLT supports our flagship Debt Awareness Week campaign. Internally, IMLT engages StepChange colleagues through initiatives such as “Ask Me Anything” sessions, helping embed expertise across teams.

This holistic approach ensures change is driven both internally, through improved processes, and externally by raising public awareness – a valuable contribution to fight against illegal money lending.

Integrating IMLT’s specialist insight into StepChange’s data-led service model has significantly improved outcomes for clients.

One key development has been refining how advisors identify potential illegal lending, particularly when clients report loans from friends or family. The Swimming with Sharks report, published in 2026, shows that 60% of victims supported by IMLT considered their lender a friend before borrowing from them.

When clients report debts to friends or family, StepChange advisors now ask additional questions to determine if illegal lending is taking place, such as:

• Do they charge interest?
• Do they lend to others?

These simple but targeted questions, both of which are indicators of borrowing from a loan shark, help to uncover patterns of illegal lending. Considering these questions often prompts clients to reassess their situation and enables advisors to provide tailored support at an earlier stage. As a result, clients benefit from:

• Faster identification of harm.
• More appropriate and specialist support.
• Improved long-term outcomes.

StepChange also shares anonymised data with IMLT, helping build a clearer national picture of illegal lending activity in the UK. This includes insight into case volumes, debt levels, and geographic trends, and supports more effective enforcement and prevention.

In 2025:

• 187 clients disclosed illegal money lending debts.
• £25,536 average debt per affected client.
• 262 additional clients showed indicators of illegal lending.

These figures highlight both the scale of the issue and the importance of continued collaboration.

Over the past four years, our collaboration has gone from strength to strength. In recognition of its impact, StepChange’s IMLT partner status, achieved in 2024, was upgraded to Premium Plus Partnership in June 2026.

StepChange has also recently introduced a warm transfer process for clients affected by illegal lending. This will provide a more seamless experience for individuals needing specialist support, while strengthening referral pathways and improving outcome tracking.

Without addressing illegal lending, debt solutions are less likely to succeed, and financial resilience remains at risk.

This partnership demonstrates how collaboration, data sharing, and specialist expertise can significantly improve outcomes for vulnerable people. By working together, organisations can identify hidden harm, intervene earlier, and deliver more sustainable solutions.

Through its partnership with the Illegal Money Lending Team, StepChange is helping challenge loan sharks while building a stronger, more joined-up response to illegal lending, delivering better outcomes for individuals today and creating a safer financial landscape for the future.