Loan shark jailed after lending £950,000 and expecting £1.7m in return

A loan shark who operated an illegal money lending business for more than a decade, lending over £950,000 and expecting more than £1.7 million in repayments, has been jailed.

Philip Lister, 64, admitted illegally lending money in the Doncaster area between June 2015 and November 2025.

He appeared at Sheffield Crown Court on Friday (Oct 2), where he was sentenced to 14 months in prison.

Judge David Dixon told Lister: “This is serious offending and will not be tolerated.”

The court heard that while some borrowers had described Lister as nice and polite, he charged high interest rates and his offending was no less serious than that of a stereotypical loan shark.

Lister had previously held a licence to lend money, granted by the Office of Fair Trading in 2013.

However, when the Financial Conduct Authority replaced the OFT in 2014, he was informed that he needed to reapply for authorisation or his permission to lend would expire in May 2015.

Despite failing to renew his authorisation, Lister continued lending money through his business, Phil's Autos.

The England Illegal Money Lending Team (IMLT) launched an investigation in 2025 after receiving information about his activities.

In November 2025, officers executed a warrant at Lister's home in Belton, North Lincolnshire, and searched his business premises in Armthorpe, Doncaster.

More than £64,000 in cash was discovered, along with documents revealing the scale of his illegal lending operation.

Investigators identified at least 1,290 loans totalling £959,914, with an anticipated return of £1,738,824.

Prosecutor Simon Mortimer told the court that when Lister was arrested, he admitted to officers: “I’ve been lending for years, I just haven’t got an FCA licence.”

The court heard that Lister regularly provided loans to people unable to access mainstream credit, including those purchasing vehicles from his business.

Interest rates were typically around 50%, with borrowers given loan agreements that made the operation appear legitimate.

One borrower took out a £1,500 loan with £840 added in interest, making repayments of £240 a month.

Another borrowed £400 while struggling financially before taking out a further £600.

He told investigators he had assumed the lending was legal and did not know how much interest he was paying.

When he first borrowed money, Lister allegedly warned 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”.

Other borrowers described feeling intimidated, ashamed or anxious about late payment charges.

A timetable has now been set under the Proceeds of Crime Act to establish how much Lister made through his offending and whether any assets can be confiscated.

The prosecution was brought by the IMLT in partnership with trading standards services at City of Doncaster and North Lincolnshire councils and South Yorkshire Police.

Following the sentencing, 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."