As the cost of Christmas start to rise. It can be tempting to think about credit and that’s the time loan sharks will strike.

Just when we’re looking for a little extra money to make Christmas great, these illegal lenders will pounce.

Loan sharks offer what seems like a friendly helping hand - but behind the smiles lies a dangerous trap.

What is a loan shark?

Loan sharks are illegal money lenders. They often appear trustworthy. They can be a neighbour, a parent at the school gate, a work colleague, or even a family friend.

Borrowers often don’t realise they’ve been targeted until it’s too late.

But what starts as a small loan can turn into a nightmare. Loan sharks aren’t regulated, and they can demand very high charges and interest payments. And sometimes they will use threats or violence if you can’t pay the spiralling costs.

What are the warning signs?

If you’re considering borrowing money, watch out for these red flags:

• No paperwork or written agreement for the loan.
  
  
• Repayments far higher than the amount borrowed.
  
  
• Threats or intimidation if you struggle to pay.
  
  
• Demands for personal items like your passport, bank card, or valuables as security.

If you see any of these signs, you may well be dealing with a loan shark.

Safer alternatives

If you need to borrow, consider a credit union or Community Development Financial Institution (CDFI). They offer ethical, safe loans. And they can offer them to people who’ve been refused credit elsewhere.

You can contact the Sefton Credit union here.

You can use these links to search for providers:

• findyourcreditunion.co.uk
  
  
• responsiblefinance.org.uk
  
  
• nestegg.ai

You can also find advice from the Greater Merseyside Money Advice Project here.

How to get help

If you think you’ve been targeted, don’t suffer in silence.

The England Illegal Money Lending Team (IMLT) - known as Stop Loan Sharks – can help. They investigate illegal lenders and support victims.

Remember - you’ve done nothing wrong by borrowing. The lender is the criminal.

You can contact Stop Loan Sharks confidentially and anonymously if needed:

📞 24/7 Hotline: 0300 555 2222

📱 WhatsApp: 07700 102773

💻 Live Chat: www.stoploansharks.co.uk (Mon–Fri, 9am–5pm)

✉️ Email: reportaloanshark@stoploansharks.gov.uk

Don’t let a loan shark steal your Christmas joy this year – Sleigh No To Loan Sharks!