A Scots dad who borrowed £150 so his daughter could go on a summer trip ended up paying back more than £1,000 to a loan shark. The Glasgow man initially agreed to repay £20 every fortnight to the illegal lender. But he continued handing over money for almost two years due to fear of reprisals if he stopped. He only escaped the situation after specialist investigators from Trading Standards Scotland disrupted the loan shark’s activities.
How loan sharks trap victims
Loan sharks are unlicensed lenders who operate outside the law and are not authorised by the Financial Conduct Authority. Victims are often charged excessive interest, given little or no paperwork and can face intimidation or harassment if they struggle to repay. Councillor Maureen Chalmers, chair of Trading Standards Scotland’s governance board, said: "These cases show the devastating impact loan sharks can have on families who are already under pressure. People may borrow what seems like a small amount for something as simple as a child’s trip or school clothing, only to find themselves trapped in a cycle of fear, debt, and intimidation."
Summer holidays increase pressure
With the summer holidays under way, many households will be facing extra costs for childcare, food, activities and preparing for the new school year. Loan sharks know how to exploit that pressure. The dad was eventually able to take his kids on holiday after he began saving with a local credit union and was later able to borrow safely, thanks to support from the Scottish Illegal Money Lending Unit (SIMLU).
Another case: mum borrowed £10 for school trousers
In another disturbing case, a young unemployed mum borrowed just £10 from a loan shark to buy new school trousers for her child. The woman, from West Lothian, went on to borrow more over time, lost track of how much she owed, and saw her repayment demands change at the whim of the illegal lender. Her case was only resolved a year later when it was reported to SIMLU, which is part of Trading Standards Scotland and investigates loan sharks.
Nearly 400 reports in Scotland
Nearly 400 reports of suspected loan shark activity were recorded across Scotland between March 2025 and March 2026. Glasgow hit the highest number at 124, followed by North Lanarkshire with 38, Inverclyde with 28, and Stirling and Clackmannanshire with 26. Councillor Chalmers added: "Please seek help early and do not feel you are out of options. There are safe and legal alternatives available, including local and community organisations, credit unions, welfare support and debt advice. If you have borrowed from a loan shark, you are not in trouble and you will not be judged. The lender is the one committing a crime, and support is confidential."
Anyone with information about a suspected loan shark, or who needs support, can contact SIMLU confidentially on 0800 074 0878 or visit stopillegallending.co.uk.
