The World’s Loan Sharks: Why Global Debt is the Ultimate Payday Scam

The Shocking Truth: Payday Loans on a Global Scale

Think about a typical payday loan ad: a shifty character in a cheap suit promises fast cash at outrageous interest rates, targeting people in desperate situations. Now, imagine that character is loaning money to entire countries.

This is the shocking reality we’re highlighting in our new spoof advert, “Meet the World’s Loan Sharks.” Starring actor Alex Macqueen (best known for his roles in The Thick of It, Hijack, Rivals and Inbetweeners), the film uses satire to expose the global debt crisis as tantamount to pay-day loans. Alex plays a fictional “dodgy lender” who cheerfully offers cash to countries facing crises like climate change or natural disasters, all at “incredible interest rates.”

A Few Lines from Our ‘Loan Shark’:

“Are you a small country struggling with money? Finances been hit hard, through no fault of your own, by climate change, natural disaster, war? Can’t find the cash to pay for the basics? Like roads, electricity and water?

…Not a problem – simply cut back your spending on other areas like hospitals and schools. And if you can’t pay it back, don’t worry, we’re happy to lend you more.”

The comparison is deliberately stark: if these loans are illegal and unethical for individuals in the UK, why are we allowing the same exploitative practices to condemn millions of people to poverty globally?

The Human Cost of Unfair Loans

This isn’t just about numbers, it’s about life-changing services. Nearly half the world’s population lives in countries that are forced to spend more on interest repayments than they spend on essential services like schools and hospitals. This is particularly true across Africa, where debt has skyrocketed from $17 billion in 2010 to $74 billion in 2024, a 335% increase in just over a decade

So, why is this happening? Low-income countries are often charged interest rates of 6–10% by private lenders. Meanwhile, wealthy nations like Germany can borrow at 0–1%. This means low-income countries are often forced to repay their original debts several times over.

This money, which should be training nurses, feeding children, building schools, and preparing for natural disasters, is instead going into the pockets of private creditors. When a clinic runs out of medicine, when classrooms are overcrowded, or when governments can’t hire the teachers and doctors their people need, the debt crisis is often to blame.
The number of low-income countries facing unsustainable debt has more than doubled in the last decade, rising from 22 in 2015 to 54 today. The problem is spiralling out of control.

A Once-in-a-Generation Opportunity at the G20

The good news is that we have a chance to fix this broken system, and the world’s most powerful economies are meeting this week.

This year’s G20 Summit has put sovereign debt on the agenda. CAFOD is demanding two key actions from the UK government – which plays a crucial role because 90% of private loans to low-income countries are governed by UK law:

• A New Debt Justice Law: The UK needs new legislation to force private lenders to take part in debt cancellation. Currently, they have no incentive to cooperate, as they can continue receiving payments while other lenders are providing relief.
• Immediate Payment Pause: When a country applies for debt relief, all debt repayments must be put on an immediate pause. This prevents the country from sinking further into debt while waiting for the lengthy relief process to conclude.

As CAFOD’s Lead Economist, Maria Finnerty, says: “The UK is a global debt superpower, with 90% of private loans to low-income countries governed by English law. The government could change the law tomorrow at zero cost to UK taxpayers, solving 90% of the problem and benefiting millions of people overnight. All that’s missing is the political will.”

What You Can Do

This is the moment to stop global exploitation and put countries back on track to achieving the Global Goals.

• Share the Film: Watch the film and share on socials with your message of support
• Learn More & Take Action: Visit unfairloans.com to find out more and support the call for debt justice.

Author: Celeste Sangster, Senior Campaigns and Communications Manager, Project Everyone