With the festive season bringing extra financial strain, the risk of unsafe borrowing rises. Leigh Staunton, Project Lead for the Leeds Mindful Employer Network, has been looking at local and national services that help employers support staff with financial wellbeing during this time.
In this joint blog, Maya from Leeds Credit Union and a representative from Stop Loan Sharks share their perspectives on financial distress, illegal money lending, warning signs, and the role employers can play in supporting employees.
[Content warning: abuses from loan sharks and suicidality]Please tell us a bit about you and your role.
Maya, Leeds Credit Union:
My name is Maya, the partnerships manager for Leeds Credit Union. I work with payroll partners, residents and third-sector organisations to raise awareness of the Credit Union.
Stop Loan Sharks:
The England Illegal Money Lending Team (the IMLT), known in communities as Stop Loan Sharks, was created in September 2004 to investigate and prosecute illegal lenders and support borrowers. There are an estimated 1.08 million people in England in debt to a loan shark (Source: CSJ). Over the years, the team has secured hundreds of successful prosecutions, with illegal lenders locked up for more than 614 years. More than £91.6 million in illegal debt has been written off, and around 33,000 borrowers have been supported. The IMLT is a national organisation funded via Treasury through a levy on legitimate credit businesses.
How can the festive season cause financial distress?
Stop Loan Sharks:
Christmas brings extra financial pressures and loan sharks have been known to target people who may be struggling around Christmas time. Of the borrowers Stop Loan Sharks supported during 2024, 1 in 25 (4%) borrowed specifically for Christmas purposes. Please find more info in our special blog ‘Sleigh no to loan sharks this Christmas!’ within our Stop Loan Sharks Christmas Toolkit 2025.
Maya:
Many people will avoid borrowing in advance of Christmas, but following an expensive month, they may find their budget does not stretch and fail to pay priority bills. Once someone falls behind on an important expense like rent or council tax, it can be difficult to borrow from a reputable lender, as this reflects on your credit history. This may lead people to feel that their only option for borrowing is a loan shark. By borrowing from a regulated lender before falling behind, you can keep your repayments manageable and avoid falling into a tricky situation.
What signs could indicate that an employee has got involved with a loan shark?
Stop Loan Sharks:
Common warning signs that someone has been targeted by a loan shark include:
- Debt that keeps growing even though they’re making regular payments
- Being told ‘bad things will happen’ to them if they don’t pay on time
- Feeling afraid or anxious about visitors to their home
- Stopping seeing friends and family; emotionally withdrawing from others
- Handing over all their benefits and money to someone they owe money to
- Handing over personal items (bank card, passport, jewellery) to someone they owe money to
- Receiving threatening text messages about money being owed
- Being forced into having sex or committing crimes to pay off their debts
- Being anxious, depressed, withdrawn and experiencing suicidal thoughts
- Showing signs of physical violence, such as bruises, sprains or cuts
- Not wanting to leave their house and shutting curtains to avoid being noticed
To help employees identify risk, it’s helpful to make them aware of these warning signs, which could indicate that someone is a loan shark:
- No paperwork or official agreement on the loan
- No clear information about the loan terms
- Personal items like a passport or bank card taken as ‘security’
- Threats or pressure if you miss a payment
- You’re feeling scared or intimidated by the person you have borrowed from
How can employers in the Network support employees involved with a loan shark?
Stop Loan Sharks:
Look out for the red flags that could indicate loan shark involvement (highlighted in the previous answer). If you’re worried a friend or loved one is involved with a loan shark, letting the person know you are concerned about them might help them take the first step and access support. They might not be ready to talk, but any information you can get from them could help start an investigation into the loan shark.
If someone confides in you that they are involved with a loan shark, it’s important not to blame them, but instead show empathy to their situation.
It can be harrowing to listen to someone you care about disclosing they are suffering at the hands of a loan shark. We are here to help you – contact us. You don’t have to give your details (or your friend’s/family member’s). We can just talk you through their options, and the ways you can help.
You can check the FCA register to see if the lender is authorised or send us a message on Live Chat and we’ll check for you.
When talking to someone about possible involvement with a loan shark, remember to:
- Listen carefully and take care not to blame them
- Acknowledge they’re in a scary and difficult situation, but there is a way out
- Give them time to talk and try not to interrupt them
- Remind them they are worthy of help and they don’t have to go through it alone
- Tell them nobody deserves to be threatened or treated this way; the loan shark has no legal right to recover the debt
- Tell them there are others who have been in a similar situation but got help
- Ask if they have suffered physical harm – if so, offer to go with them to a hospital or GP if needed
- Help them report the loan shark to our team if they choose to
- Be ready to provide information on organisations that offer help
If you are worried about someone, you can call our 24-hour helpline on 0300 555 2222 for confidential advice and support. We’ll check the lender out, talk to you about your concerns and let you know what steps you can take to help the person.
We know people are often ashamed or worried about what will happen to them if they report a loan shark. Remind them that they have done nothing wrong. The Loan shark is acting illegally, not them. It’s important to remember that bad things happen when people don’t report loan sharks. The right thing to do is to come forward.
Stop Loan Sharks Live Chat is a discreet way to access support if you’re not ready or able to make a call. Click on the chat icon in the bottom right-hand corner of the screen to talk online with our team. We’re online 9am to 5pm weekdays (excluding bank holidays) or call us anytime on 0300 555 2222. You can also WhatsApp us on 07700 102772 (available Monday to Friday 9am to 5pm).
What mental health impact might use of loan sharks have on people?
Stop Loan Sharks:
Loan sharks employ intimidation and control to ensure borrowers prioritise their payment over all other financial commitments.
This can leave people feeling isolated and alone. They can feel ashamed and as if they are to blame. This can stop them reaching out for help. People have been pushed to consider suicide.
In 2024, 93% of borrowers supported by Stop Loan Sharks said that they were in a state of worry, stress, depression, or severe anxiety because of their involvement with a loan shark.
What can employers do to help borrowers and raise awareness?
Stop Loan Sharks:
You can raise awareness by:
- Displaying Stop Loan Sharks publicity resources
- Ensuring all staff undergo Stop Loan Sharks specialist training
We offer bespoke training on how to spot the signs of a loan shark to help you identify borrowers and refer them to us. We also offer follow-up sessions that look at aspects of our work in greater detail. To book this free training please contact: Catherine.wohlers@birmingham.gov.uk
If you are working with someone who has borrowed from a loan shark, we can come to meet them. They can remain anonymous if they prefer, and no pressure will be put on them to give details they don’t want to. By meeting us face to face, we find we can reassure people and gain their trust, making them more likely to engage and access our support.
You can complete our online reporting form to share information about the loan shark with our team or call our 24-hour helpline on 0300 555 2222.
We can also offer the following for partner agencies, completely free of charge:
- Presentations for service users and residents to raise awareness of illegal lending
- Publicity materials
- Social media campaigns and toolkits
- ‘Loan shark proofing’ policies and procedures
- Proceeds of Crime grants to help fund projects that stop loan sharks
- Partnership recognition award programme
- Financial education resources for schools
We can also develop bespoke projects and campaigns with you, and will work with you to increase financial inclusion.
Maya, what financial support can Leeds Credit Union offer in the run-up to the festive period and afterwards?
Maya: We provide Christmas Club accounts, allowing people to build up their savings throughout the year, and withdraw from the 1st of November to the
24th of December. Preparing for those extra expenses month by month.
For those wishing to borrow over the Christmas period, we provide affordable, flexible loans from £250 to £25,000. Allowing people to borrow from a trusted lender helps to reduce the appeal of opportunistic loan sharks who may take advantage of people struggling to meet their festive budgets.
What credit union services might benefit employers in our Network?
Maya: Employers in our payroll network can provide their staff with access to credit union services through salary sacrifice payments. Employees can choose to save or borrow directly from their pay. By taking deductions straight from the source, employees can build their savings without needing to make that conscious choice each month or borrow with our preferential rates.
How can awareness of Leeds Credit Union help employees in customer-facing roles?
Maya: Employees in customer-facing roles, regardless of industry, are likely to encounter customers with financial difficulties. Many people do not possess photo ID, which can limit the services they can access. We are able to work with members to accept an array of alternative forms of ID to improve accessibility.
For those who struggle to access credit due to a lower credit score, we have our family loan product, where loan repayments are taken as a deduction of child benefit. Due to this being a regular income, we only need to consider affordability when assessing these loans, not a credit score.
Are there any common misconceptions about borrowing from Leeds Credit Union that you’d like to demystify?
Maya: Historically, credit unions have required members to have an existing savings balance to borrow against. This is no longer the case at Leeds Credit Union. We are happy to review loan applications from brand-new members.
We have also moved with the times, offering our services through online and mobile banking alongside our branch network and telephone support.
Lastly, what many people don’t realise is that credit unions are fully authorised and regulated by the Bank of England – just like banks and building societies – so members can be confident that everything we do is fully regulated, and, when people save with us, their savings are protected under the Financial Services Compensation Scheme.
Why should meaningfully supporting employees in financial distress be on an employer’s agenda during the festive season and beyond?
Stop Loan Sharks:
People may face extra financial pressures at this time of year. Knowing the safe alternatives available and where to turn for help can be a lifeline for people.
Maya:
Many people may turn to unsafe sources if they are declined credit from a high street bank. Knowing that the Credit Union has loan products to support residents can make a huge difference to their financial wellbeing.
It’s important to ensure that employees are aware of the services that the Credit Union offers. Anyone who lives or works in Leeds (among our other areas) are eligible to join the Credit Union.
Thank you to Stop Loan Sharks and Maya of Leeds Credit Union for contributing to this blog.
Find out more about Stop Loan Sharks
Find out more about Leeds Credit Union
Join the Leeds Mindful Employer Network.
Find out about becoming a Mindful Employer Charter Signatory.
