Watch out for the Christmas villains giving King Herod a run for his money

People looking to borrow in the run-up to Christmas are being urged to give one particularly nasty type of lender the cold shoulder.

Along with glad tidings of comfort and joy, the festive season can also pile on the financial pressure. Shelling out for parties, fancy food, decorations and presents can quickly add up, leaving some of us struggling to make ends meet.

The added emotional pressure to create the “perfect Christmas”, especially when you have kids or you’re hosting on the big day, can make us particularly vulnerable to loan sharks.

At first glance, these illegal lenders may appear like Angel Gabriel bringing news of a miracle to the Shepherds, but before long, you’ll realise they’re actually the devil in disguise.

What is a loan shark?

Loan sharks are illegal money lenders, although they’re unlikely to introduce themselves in these terms. More often than not, they’ll pose as a well-meaning acquaintance - a concerned neighbour, a sympathetic parent at the school gate, a kindly work colleague or even a family friend. Borrowers often don’t realise they’ve been targeted until it’s too late.

Speaking to us about the way illegal lenders operate, Cath Wohler from the enforcement agency and campaign group Stop Loan Sharks urged people to be wary:

“If you think you're borrowing from a friend, you've just got to be a bit cautious in terms of how well do you know this person? Because if someone's lending you money, they're taking a risk.

“So if it's someone at the school gate, just think ‘Why would that person lend me money? Because I could just ignore them at school or I could turn up 5 minutes late every day, and they don't know who I am, where I live or anything else.’

“You know, friends do lend friends money, and that's absolutely fine.

“But is this person really your friend?”

Cath explained that what starts as a small loan can spiral into a nightmare. And because loan sharks aren’t regulated, they can charge what they like and sometimes use intimidation or violence when you can’t pay.

She said:

“They’re bullies, and I don’t like bullies.

 “We've seen people pushed to the brink of suicide by somebody else's greed.

“It's quite easy to get passionate about not liking loan sharks.” 

Red flags to watch out for

Signs you may be dealing with a loan shark include:

• no paperwork
• extremely high repayments
• threats and intimidation if you don’t pay
• taking personal items like your passport or bank card as security.

Safer options

If you need to borrow and you’re confident you can afford the repayments, consider a credit union. They offer safe loans and will consider you even if you’ve been refused credit elsewhere.

But if you’re struggling to cover the cost of essentials, it’s probably a better idea to get debt advice rather than taking out credit you can’t afford. We can check whether you’re missing out on financial support you’re entitled to and look at ways of dealing with your existing debt.

If you’ve borrowed from a loan shark

Get help. You’ve done nothing wrong by borrowing; the loan shark is the criminal.

You can get in touch with Stop Loan Sharks confidentially and anonymously if needed:

24/7 hotline: 0300 555 2222

WhatsApp: 07700 102773

Live Chat: (Mon–Fri, 9am–5pm)

email: [email protected]