THOUSANDS of people have already used a loan shark this year and with Christmas on the way a North-East council is backing a campaign highlighting the risks.

The England Illegal Money Lending Team (IMLT) has today (Monday November 30) launched a social media campaign to promote the Stop Loan Sharks message in the run up to Christmas.

Darlington Borough Council is working with the team to roll out the campaign with the aim of ensuring that everyone knows what a loan shark is and, more importantly, how to avoid or report one.

Councillor Chris McEwan, Darlington Borough Council’s cabinet member for economy, said: “No matter how much you may be struggling financially, loan sharks are not the answer this Christmas.

“These criminals should always be avoided at all costs and we’re delighted to be supporting this campaign to help get that message across.

“A loan shark could easily ruin your Christmas and you could be subjected to years of harassment, paying back your loan several times over.

“And there are other options – we’d recommend a credit union such as Darlington Credit Union, as a safe and legal alternative.”

A loan shark is someone who lends money without the correct permission from the Financial Conduct Authority. An estimated 310,000 households have already borrowed from one this year.

They may initially appear friendly but they will often use violence and intimidation causing borrowers endless misery.

In addition, loan sharks rarely offer paperwork and keep their borrowers in the dark by refusing to say how much is owed, how much longer the borrower has to pay and how much interest they are paying on top - in some cases interest has been as high as a staggering 131,000 per cent APR.

These debts are usually not enforceable in law and the IMLT will investigate and prosecute loan sharks for illegal money lending and any linked offences.

Tony Quigley, Head of the IMLT, said: “By working with partner organisations and community members with a social conscience, the Stop Loan Sharks message can be sent out to many people with the ease of looking up today’s weather.

“We want to let those borrowing from loan sharks, especially in the run up to Christmas, know that there is help available.”

More than 26,000 victims have been helped by the IMLT who can be contacted in confidence on 0300 555 2222 or email reportaloanshark@stoploansharks.gov.uk.