Nearly 400 reports of suspected loan shark activity were recorded across Scotland between March 2025 and March 2026, with Glasgow hitting the highest number at 124, followed by North Lanarkshire with 38, Inverclyde with 28, and Stirling and Clackmannanshire with 26, according to Trading Standards Scotland.
Loan Shark Victim Stories Highlight Devastation
A Scots father who borrowed £150 so his daughter could go on a summer trip ended up paying back more than £1,000 to a loan shark, consumer watchdogs have revealed. The man, from Glasgow, initially agreed to repay £20 every fortnight to the illegal lender, but 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.
In another disturbing case, a young unemployed mother 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 the Scottish Illegal Money Lending Unit (SIMLU), which is part of Trading Standards Scotland and investigates loan sharks.
Support and Safe Alternatives Available
Following support from SIMLU, the father from Glasgow began saving with a local credit union and was later able to borrow safely to take his children on holiday. 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.
“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. Our message is clear: 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. We would urge anyone worried about their own situation, or concerned about a friend, neighbour or family member, to contact SIMLU.”
Shark Free Summer Campaign
The Shark Free Summer campaign is raising awareness of the many legal options that are available to families who might be struggling to make ends meet over the holidays. These include government grants and funding, credit unions, free debt advice, and support from local communities, schools and charities. 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.
