Stop Loan Sharks: Protect Your Finances This Christmas

The Christmas season brings joy and celebration, but the financial demands of gifts, parties, and food can create significant pressure. When budgets are tight, the risk of encountering illegal lenders—or loan sharks—is high.

While a loan shark may seem friendly and offer a quick cash solution, they are dangerous criminals. They prey on vulnerable people, offering a hand that leads to a dangerous debt trap.

What Is a Loan Shark?

Loan sharks are illegal money lenders who are not regulated by the Financial Conduct Authority (FCA). They often operate within communities and may be a neighbour, a colleague, or a 'friend,' meaning many borrowers don't realise the danger until it is too late.

Since they operate outside the law, loan sharks can:

• Charge extortionate interest rates and fees.

• Demand payments far exceeding the original amount borrowed.

• Use intimidation, threats, or violence if payments are missed.

🚩 Warning Signs

If you are thinking about borrowing money, watch out for these critical red flags:

• There is no paperwork or formal written agreement for the loan.

• Repayments are far higher than the amount you originally borrowed.

• The lender uses threats or intimidation if you have trouble paying.

• They demand personal items, like your passport or bank card, as security.

💚 Gateway Credit Union: Your Safe Choice

If you need financial support, always turn to your credit union first. We offer fair, ethical, and fully regulated loans and savings options to help you manage your money safely and responsibly throughout the year.

🛡️ Get Help Now (Wales Illegal Money Lending Team)

If you believe you have borrowed from a loan shark in Wales, please do not suffer in silence. You have done nothing wrong; the lender is the criminal.

The Wales Illegal Money Lending Team (IMLT) investigates these crimes and provides crucial, confidential support to victims across the country.

You can contact them safely and anonymously:

Don't let illegal debt steal your peace of mind this winter.