Borrowing safely: United Kingdom.

A take-home sheet for people at the session. Other countries: United States · Canada · Australia.

Moraph for Good · Fluent

Borrowing safely: United Kingdom

Handout · moraph.org/commons/sessions/fluent/borrowing-safely

The cost of a loan is everything you pay back, not the monthly payment. This sheet has the questions to ask before you borrow and where to get free help where you live.

Three questions for any lender

What is the yearly rate including fees?
What is the total I will pay back?
What happens if I pay late or early?

Warning signs

Pressure to sign today
No questions about whether you can afford it
A fee before you get the loan, which is often a scam
A lender that wants to keep your ID or bank card

Cheaper options to ask about

Small loans from credit unions or community lenders
A payment plan with the company you owe
Free, not-for-profit debt advice

If you’re struggling

Contact the lender before you miss a payment
Complain in writing, and keep copies
Use the official routes below if it isn’t resolved

In the United Kingdom

Check the lender is authorised. Lenders must be authorised by the Financial Conduct Authority (FCA), and you can check on the FCA’s register. Loan sharks are illegal moneylenders; you can report one anonymously, including if you have borrowed from them.
Payday loans are price-capped. The FCA has capped the cost of high-cost short-term credit, such as payday loans, since 2015, and restricts rollovers and how repeat payments are collected.
Complain to the firm first. Firms must normally send you a final response to a complaint within 8 weeks. If you’re unhappy with it, the Financial Ombudsman Service is free; contact it within 6 months of the firm’s final response.
Breathing Space. The Breathing Space scheme can give you temporary protection from creditors while you get help with debt. You apply through a debt adviser.

Official places to check:

GOV.UK: www.gov.uk/report-loan-shark
Financial Conduct Authority: www.fca.org.uk/firms/high-cost-credit-consumer-credit/high-cost-short-term-credit
Financial Conduct Authority: www.fca.org.uk/consumers/how-complain
Financial Ombudsman Service: www.financial-ombudsman.org.uk/consumers/complaints-can-help
GOV.UK: www.gov.uk/options-for-dealing-with-your-debts

General information, not advice about your own situation. Checked 19 October 2026. If an official source says something different, it is right. Free to copy and adapt. moraph.org/commons/sessions/fluent/borrowing-safely