Doncaster loan shark jailed after £950k lending operation expected £1.7m return

A 64-year-old man who illegally lent more than £950,000 to borrowers in the Doncaster area and expected more than £1.7 million in return has been jailed.

Philip Lister had originally been granted a licence to lend money by the Office of Fair Trading in 2013.

When the Financial Conduct Authority replaced the Office of Fair Trading in 2014, Lister was informed that he would need to apply for new authorisation or his permission to lend would expire in May 2015.

Lister did not reapply but continued lending money between June 2015 and November 2025 while trading as Phil’s Autos.

Investigators found that he regularly provided loans to people who were unable to access mainstream credit or to help customers purchase vehicles from Phil’s Autos.

Interest rates were usually around 50 per cent and borrowers were provided with loan agreements which gave the business an appearance of legality.

The England Illegal Money Lending Team launched an investigation in 2025 after receiving a report that Lister had been lending illegally.

In November 2025, officers executed a warrant at Lister's home in Sandtoft Road, Belton, North Lincolnshire. His business premises in Armthorpe, Doncaster, were also searched.

More than £64,000 in cash was found at his property alongside documentation indicating an illegal lending business.

Simon Mortimer, prosecuting on behalf of the IMLT, told Sheffield Crown Court that when Lister was arrested, he told officers: “I’ve been lending for years, I just haven’t got an FCA licence.”

Investigators established that at least 1,290 loans worth a total of £959,914 had been advanced during the offending period, with an anticipated return of £1,738,824.

The IMLT spoke to a number of borrowers, including some who were receiving benefits and had borrowed money regularly.

One person borrowed £1,500 with £840 in interest added, making repayments of £240 a month, while another borrower was shocked to discover she was paying an interest rate of 50 per cent.

Another person borrowed £400 while struggling financially and later took out a further £600 loan. He did not know how much interest he was paying and believed the lending was legal.

When he first took out a loan, Lister told him: “if you don’t make the repayments, I’ll be handing it over to someone else who you don’t want to be on the wrong side of”.

Another borrower said she would panic when Lister mentioned late payment charges, while another said he felt intimidated and ashamed and knew penalty charges would be added.

Lister admitted illegal lending between June 2015 and November 2025.

The 64-year-old appeared at Sheffield Crown Court on Friday (Oct 2), where Judge David Dixon sentenced him to 14 months' immediate imprisonment.

The judge told him: “This is serious offending and will not be tolerated.”

The court heard that although some borrowers had described Lister as nice and polite, the judge said he had charged high interest and that his offending was no less serious than that of a stereotypical loan shark. He said Lister had ignored regulations designed to protect borrowers.

A timetable has also been set under the Proceeds of Crime Act to assess how much money was made through the offending, identify available assets and determine whether any confiscation is possible.

Dave Benbow, head of the IMLT, said: “This was a case of someone who knew exactly what the rules were, but chose to ignore them. He was fully aware that he needed authorisation to lend money, yet continued operating without a licence, avoiding the regulations that exist to protect borrowers.

"Over many years, he lent money to a large number of people and profited from their financial difficulties. While some may have viewed him as providing a service, the reality is that he was exploiting people who were unable to access credit elsewhere.

"Unauthorised lending can have serious consequences. Illegal lenders do not carry out the affordability checks required of regulated lenders, meaning they may lend to people who cannot afford to repay. Borrowers are also denied important consumer protections, including access to support if they struggle with repayments. This can cause significant stress and leave people unable to meet essential household costs such as rent, utilities and other priority bills.

"This sentence sends a clear message that illegal lending will not be tolerated and that we take these offences extremely seriously."