Mum-of-two trapped in debt after borrowing £750 from loan shark friend 10 years ago

A mum-of-two has been left thousands of pounds in debt after borrowing £750 from a loan shark who posed as a friend ten years ago.

Kim, now 41, and her then-partner, took out four loans with the same woman and gave half of their net income to her every month.

The couple, who lived in the North-west of England, said the loan shark was a woman who had previously worked for a legitimate lender.

She said: "We trusted her. We thought she was operating legally and she told us we were 'good payers'. She used to come and sit in our house and fuss over my children.

"She told us about her family and her holidays. We were friendly. We'd known her for some time."

For an initial loan of £750, Kim was paying back £400 interest. The pressure intensified when the lender asked when her payday was and harassed her until each payment was made.

Have you been approached by a loan shark? Get in touch: emma.munbodh@mirror.co.uk

Kim still took out further loans. She explained: "We were both working and so people think you've got money, but by the time you've paid your bills you've not got much left in the pot.

"It's hard if the washing machine breaks down or if you don't know where the money's coming from for Christmas – and if somebody wafts cash in your face you don't think about it too much."

Then, one difficult Christmas, after many years of repayment, Kim realised she couldn't afford a payment.

"She was messaging me constantly and I felt I was being hounded. I'd asked her if I could miss one month but the messages she was sending back were that I had to pay. There was no choice.

"I thought, 'This isn't right.' I went to Citizens Advice about what my rights were and it became clear I wasn't dealing with a legitimate lender."

The lender was arrested and the case is ongoing.

Advising those who are in dire straits financially, Kim said: "It may seem like you don't have any option but going with an illegal lender will make whatever situation you're in much worse."

The cost of living crisis could lead to people turning to desperate measures to pay their bills, a West Midlands police chief has warned.

Tom McNeil said he was worried the pressure of paying household bills could force the worst-off into taking extreme measures in order to survive.

Terrified dad in £25,000 debt after borrowing £6k from loan shark who posed as friend

The Assistant Police and Crime Commissioner insisted there was no excuse for crime but "desperate circumstances lead to people to make desperate decisions".

He accused Chancellor Rishi Sunak of "overseeing poverty" as he painted a stark picture of the extreme measures struggling families could go to.

He said he was worried people could turn to sex work or that kids could end up selling drugs "to help their mum pay to heat the house" or "feed their brothers and sisters".

It comes as hundreds more people in the region have been sent flooding towards food banks because they can't afford to pay for food.

In a letter to the Chancellor, the Labour APCC said: "The level of poverty you are overseeing may see a rise in parents stealing to feed their children. We may see car theft increases. People could choose to rob or steal to keep up the rent payments.

"Vulnerable people may be exploited into sex work. Children may be manipulated into selling drugs by hardened criminals because they want to help their mum pay to heat the house, feed their brothers and sisters and keep the loan sharks at bay."

Mr McNeil also accused the Chancellor, fresh from scandals over his wife's tax affairs and a lockdown party fine, of not doing enough to help the worst-off families who have been hit by huge rises to energy bills and other household costs.

He said: "This will include many families who were already struggling to cope, despite working extremely hard. Your tax rises, coupled with rising energy, travel and food prices are going to create a wave of profound poverty and desperation.

"I am extremely concerned that the impact of rising living costs will create the conditions for rising crime, including youth violence."

Loan sharks – the warning signs

Loan sharks often appear as friends or friends through friends, who are there to offer a helping hand.

They may approach you on social media, in the pub or at work, but the reality is that strangers are unlikely to offer you money without a catch.

These catches often include far higher interest rates than through a normal bank, pressure to pay or being blackmailed to pay more than you owe, and the risk of being threatened or harassed if you cannot meet your repayments.

And more importantly, loan sharks are illegal in Britain.

Here are some warning signs to watch out for.

• A loan without paperwork or a formal or written agreement
• Refusing to give you specific details about the loan such as the interest rate
• Withholding your possessions such as your passport and bank card until the debt is paid or as 'security' on the loan
• Taking things from you or intimidating you if you don’t pay on time
• Adding more interest or charges so the debt never goes down
• Using threats or violence if you don’t pay
• Friendly behaviour from what is effectively a stranger that quickly turns to talking about money.

It may seem like a difficult step to take, but if you think you may be involved with a loan shark, you can get help here.

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