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Christmas is coming – a time of parties, presents, good food and family celebrations. But it can also bring stress, worry and financial pressure.

Loan sharks recognise this, and it can be a time of year when they take advantage of the most vulnerable by pretending that they are helping out in a time of need.

The England Illegal Money Lending Team (IMLT) is a national organisation, hosted by Birmingham City Council, which investigates and prosecute illegal lenders and supports borrowers. It is better known in communities as Stop Loan Sharks.

This Christmas, it is warning people that however tempting that offer of a loan might be and however friendly someone might seem, they should be aware that there could be a loan shark lurking beneath the surface.

What is a loan shark?

Illegal money lenders (loan sharks) are not always easy to spot. They could be a neighbour who always stops to chat, a parent who you know from the school gate, a popular work colleague, even a long-standing family friend.

Borrowers often aren’t aware that they have borrowed from a loan shark until it’s too late. Things can quickly turn nasty as they demand repayments and issue threats of violence when you can’t pay.

There are warning signs to look out for which may all indicate that someone is a loan shark. They include:

  • Being given no paperwork or details about the loan
  • The lender demanding repayments that add up to much more than you initially borrowed
  • Being intimidated or threatened by the lender if you struggle to pay
  • The lender demanding you hand over items like bank cards or a passport until you can pay

If you do need to borrow, the IMLT advises people to contact their nearest credit union, which offer an alternative, ethical and safe way of borrowing for people who may have been refused credit elsewhere. Visit www.findyourcreditunion.co.uk to find one nearest to you.

If you think you have been targeted by a loan shark, get in touch with the IMLT as soon as possible in complete confidence. Their specialist officers can offer advice and support and investigate the illegal lender.

You can contact them using the following methods:

Contact us

If you’re struggling with debts, call us on 0800 316 1833. We’re open from 8am – 8pm Monday to Friday, and 9am – 3pm on Saturdays. Alternatively, you can visit our advice page to speak to us via live chat or for more information.

If you’re looking for ways to make the most of your money, BudgetSmart has hundreds of easy actions you can take to improve your monthly budget

Remember you have done nothing wrong if you have borrowed from a loan shark. It is the lender who has committed a crime.

Make sure you’re not allowing a loan shark into your life this Christmas.