The 65-year-old man was arrested on suspicion of illegal money lending.
Officers seized a large amount of cash, documentation and electronic devices.
The suspect was taken into custody to questioned The England Illegal Money Lending Team (IMLT) and Met Police Officers.
A business premises in the Mitcham area was also searched, and officers there seized documentation and more cash.
The IMLT works in partnership with Merton Council Trading Standards Service to investigate and prosecute illegal money lenders.
Dave Benbow, head of the IMLT, said: “Illegal lenders are often well known in their local community and pretend to be a friend offering a favour when someone needs to borrow.
“In reality they are targeting the most vulnerable members of society to line their own pockets.
“We will not tolerate this activity in England we will continue to work with our partners to take action against those who blight our communities in this way.
“If you have been offered a loan, threatened when you couldn’t pay, had your bank card, passport of ID taken from you as security or if what you owe keeps growing even though you are making payments, then you may well have been targeted and you can contact our team in complete confidence for help and advice.”
According to the Centre for Social Justice, there are around 1.08 million people in debt to loan sharks.
Set up over 20 years ago, the IMLT has arrested hundreds of illegal lenders, helped jail them for hundreds of years, cleared £91.6 million in illegal debt and supported around 32,500 borrowers.
The warning signs of an illegal lender include:
- Giving you no paperwork or agreement on a loan
- Refusing to give you information about the loan
- Keeping items until the debt is paid such as your bank card or passport
- Taking things from you if you don’t pay on time
- Adding more interest or charges so the debt never goes down
- Using intimidation or violence if you don’t pay
Anyone who has been affected by illegal money lending should call the Stop Loan Sharks 24/7 Helpline on 0300 555 2222 or access support online at www.stoploansharks.co.uk
