UK Households Resorting to Illegal Lenders for Funeral Expenses
Disturbing new research has uncovered that thousands of British families are being forced to borrow money from illegal loan sharks to pay for funeral costs, highlighting a growing crisis in funeral affordability across the nation.
Alarming Statistics on Funeral-Related Debt
The comprehensive study conducted by Funeralexperts.com reveals that 32,400 people – representing 3% of the 1.08 million individuals who reported borrowing from illegal lenders – did so specifically to cover funeral and health-related expenses. Even more concerning is the acceleration of this trend, with the figure rising to 43,200 people (4%) in just the first six months of 2025 alone.
These statistics paint a troubling picture of families facing impossible financial choices during their most vulnerable moments, with funeral costs becoming increasingly unmanageable for many households across the country.
Expert Warnings About Financial Exploitation
Joanne Regan, Director of Operations at FuneralExperts.com, expressed deep concern about the findings, stating: "No family should be forced into debt simply to say goodbye to a loved one. Yet every single day we hear heartbreaking stories from people who feel completely trapped, facing funeral costs they cannot possibly afford with nowhere legitimate to turn for help."
Regan continued with a stark warning: "In those moments of profound grief and vulnerability, many bereaved individuals are being pushed toward illegal loan sharks or exploited by providers who should know better and act more ethically."
Official Guidance on Safer Alternatives
Dave Benbow, Head of the England Illegal Money Lending Team (IMLT), which operates under the official name Stop Loan Sharks, provided crucial context about why families become vulnerable to exploitation. He explained: "Funerals can represent significant financial burdens, and when someone passes away suddenly or unexpectedly, it's often an expense that hasn't been planned for in advance."
Benbow elaborated on the emotional dimension of the crisis: "This situation leaves grieving families needing to find substantial sums of money quickly, precisely when they are emotionally overwhelmed and least equipped to make complex financial decisions. Managing finances should be the last thing they need to worry about during such painful times."
The IMLT head issued a strong warning about predatory lending practices: "Unfortunately, illegal lenders frequently target people when they are at their most vulnerable. Situations involving bereavement and funeral planning are seen as prime opportunities to exploit those in distress."
Available Support and Safer Options
Benbow emphasized that help does exist for those struggling with funeral costs, while acknowledging the practical challenges: "There is legitimate assistance available to help cover funeral expenses, but during such painful periods, families understandably struggle to balance their grief with financial management responsibilities."
He offered clear guidance for those facing financial pressure: "We strongly urge people to avoid borrowing from illegal lenders, even if they present themselves as friends offering favours. There are much safer and more supportive alternatives available, including credit unions and Community Development Finance Institutions (CDFIs) that operate legally and ethically."
For those who may have already borrowed from illegal lenders, Benbow provided crucial advice: "If anyone has already taken money from an illegal lender, we encourage them to contact our specialist team as soon as possible for confidential support and guidance. There are pathways out of these situations that don't involve further exploitation."
The research underscores a pressing need for greater awareness about funeral cost support and stronger protections against predatory lending practices targeting vulnerable households during times of bereavement.
