I thought he was my friend. He turned out to be a loan shark (Picture: Getty Images/iStockphoto)

We could tell that something was up as soon as he walked in.

Shoulders hunched, head hung low, all the signs we’d come to recognise were there.

He was embarrassed, ashamed. And then he said the words we always hated hearing…

‘I thought he was my friend. He turned out to be a loan shark.’

A few weeks before he came to our door, Simon’s* car had broken down. Disaster.

He needed that to get to work, pay the bills and keep a roof over his head.

Fortunately, a friend he had met recently offered to lend him the cash to get it repaired.

He’d been so grateful and took the money without question. He soon had his car back on the road and his worries eased.

At first, his friend appeared relaxed about the repayments. There was no immediate rush to get the money back, and he wasn’t pressuring Simon at all. But that soon changed.

This friend then started talking about interest, late payment fees and penalties.

Gradually, Simon was handing over more and more money, yet never seemed to be making a dent in his debt.

And when he missed a payment he came home to find his windows smashed in.

Terrified, that’s when Simon came to us for help.

As a credit union, we support people across Lancashire with their finances. It’s not unusual for customers to get emotional about money and budgets, but Simon had been duped in the worst way possible. 

We could see he was visibly distressed, but as he began to open up about what had happened, you could sense a weight lifting from his shoulders. 

Simon is far from alone though. The non-profit organisation Fair4All Finance estimates that more than three millions Brits are likely to have borrowed from an illegal lender in the past three years.

Not all these people have the same story, but deception is a common theme.

Jackie helped Simon get back on his feet (Picture: Jackie Colebourne)

Loan sharks know how to make people trust them, and believe that they want to help them. The reality, of course, is they want to do anything but.

As soon as they spot the opportunity to put pressure on you and get even more out of you – whether that is more money, or being forced to carry out illegal activities for them – you’ll see what’s really behind the mask.

We recently saw another case where a woman working as a security guard was coerced into turning a blind eye to theft at her workplace after she fell behind on payments to a loan shark. It happens far more often than you’d think.

This deception leaves victims feeling anxious, scared for their safety, as well as betrayed and isolated.

Like Simon, they may worry that nobody is going to believe them, or that they’ll be blamed for making that mistake.

Thankfully, we were able to offer Simon a sympathetic ear, as well as advise him on how to proceed.

The first step was that he needed to confidentially report this loan shark to the England Illegal Money Lending Team.

We were also able to make him a flexible, affordable loan to get his windows fixed and help him get his finances back in order.

But even though Simon is generally a very chatty, friendly guy, he remains embarrassed about what happened, and concerned about the consequences. Like so many other victims, he is, quite understandably, scared.

This is part of the problem though. The issue doesn’t get talked about enough. The stigmas and public perception remains, which in turn means more people fall into these lenders’ traps.

Some loan sharks don’t even need to adopt those befriending tactics. The lack of affordable credit available in the UK to lower income households provides a fertile ground for illegal lenders.

In fact, Fair4All Finance’s recent research quotes one illegal lender in London, saying that he doesn’t need to actively look for customers. ‘Seriously, if punters know there’s a money lender out there, they throw themselves at you,’ he said.

Another explained that loan sharks like to find customers they know can’t afford to pay them back, because then they can keep charging interest and penalties, achieving ‘astronomical’ returns for longer.

Our advice when it comes to borrowing money is be aware. If your ‘friend’ is someone who turned up out of the blue, at just the right time, be sceptical about their intentions.

If you’ve borrowed money from someone who appears to be a genuine lender, but doesn’t give you any paperwork, pays your loan in cash, or takes away a bank card, passport or valuables as a ‘security deposit’ it’s likely not going to be your best choice. Remember, a legitimate business is unlikely to give loans in cash.

And if you are scared of people finding out, that’s another warning sign that your lender may be illicit, and about to use bullying tactics.

Should you ever be in doubt, check if they are registered with the Financial Conduct Authority – it’s definitely better to be safe than sorry.

Loan sharks are dangerous, coercive and thrive on illegal lending being a taboo topic. That’s why CLEVR Money is supporting England Illegal Money Lending Team’s Stop Loan Sharks Week, which runs 23-29 October.

*To protect his identity, Simon’s name has been changed

Do you have a story you’d like to share? Get in touch by emailing [email protected]. 

Share your views in the comments below.

MORE : My sister-in-law turned my nephews against me so I took them out of my £250,000 will

MORE : I spent £60,000 to become a mum – now I can’t afford to spend time with my kids

MORE : ‘I thought my old clothes were destined for the charity shop – then I made £1,400 off them’

He’d been so grateful and took the money without question. He soon had his car back on the road and his worries eased.