Illegal lending


The drivers of illegal moneylending

Over the past two years there has been increasing concern about levels of illegal lending. But estimates of its scale vary widely. This study involved secondary analysis of the FCA's Financial Lives Survey for 2020. The findings highlight that recent small-scale surveys indicating a significant rise in illegal lending are likely to be unreliable, and that over-indebtedness and previous, legal, high-cost credit use are dangerous drivers that need to be addressed.