An East Midlands mother has revealed her ordeal at the hands of a ruthless loan shark as she urged other parents who might be struggling with costs like school unform not to get trapped like she did.
Caroline*, aged 46, borrowed around £3,000 over the years from someone she initially thought was a family friend helping out – but she ended up paying him back more than £50,000 – working three jobs to make sure she could feed and clothe her family, while he lived a life of luxury.
The brave mum has spoken out after her lender was jailed, to help other people who might be in the same position know that help is available.
One of the things she borrowed for was for school uniform items for her children and she wanted other mums, dads and carers in that position to know that help is available with those costs, and a loan shark is never the answer.
Caroline first knew her lender when he was a youngster living nearby.
“I used to help him because he didn’t have much,” she said. “Then he came into some money, and I was struggling so he offered to lend me some. I took it but there was interest put on it. I borrowed to get basics, uniforms, food, just basic stuff.”
Caroline said her first loan was for around £200 and it progressed from there.
“It was never more than about £500. On £500 I’d pay the £500 and another £500 interest. Then I just got into a circle, I was paying all the time. In the end I owed a load of money and it was just over my head and I couldn’t take any more.
“Looking at the bank transactions, I had paid at least £50,000 and that was through banks, not cash. I borrowed about £3,000. Even after I’d paid back at least £50,000 he said I still owed him more.”
Caroline ended up taking on more work, sometimes working seven days a week.
She said: “I was doing three jobs, trying to survive. I was only getting £700 a month wages and he was having at least £500. Then I had to pay my rent and council tax. I got into debt; I couldn’t pay my bills. He would come looking for me all the time, he waited outside my work. I couldn’t hide.
“His kids were going round in top of the range stuff. My kids had nothing. Once I needed uniform and I lied to him and said I didn’t get paid.
“I begged him to let me keep my money to get food and uniforms. I used to get threatened and he knew I’d pay because my kids are my life.”
Eventually Caroline broke down and decided enough was enough.
“It just got too much for me – it was either the kids lose their mum or I report it. I couldn’t take any more. I was mentally drained, doing three jobs, looking after a house,” she said.
“I was out of the house from 7 in the morning until 6 at night, coming home doing all the house chores, and I was working another job Saturdays and Sundays to get extra money. My body couldn’t do it any more, I basically shut down.”
Caroline got in touch with Stop Loan Sharks after seeing posters and was able to give them enough information to start an investigation and support her at the same time.
But she said she then started to feel guilty, thinking she was to blame.
“I went to him to ask for money and I kept thinking ‘will they think it’s my fault?’,” she said. “Then I was thinking ‘how will his kids cope without their dad if he is arrested?’. But he didn’t care about my kids. He has seen my child with no food and he didn’t care – he was still going on holidays, getting takeaways. He didn’t care about me so why should I care about him?
“He was greedy. He could have said ‘no you don’t have to give me your money this week’.”
With the help and support of the Stop Loan Sharks team, Caroline slowly started to realise that she and her family had been taken advantage of for years and she started to see what a devastating effect it had had on her mental health.
“People in my area must have thought I was on drugs or something, I was constantly asking people for money. I have never touched a drug in my life,” she said.
“I lost a lot of friends at the time and family members because they must have thought ‘where is your money going? You’re working three jobs how have you not got the money, you should be rolling in it.’
“I was too embarrassed to tell people what I was doing.”
Caroline was afraid that she would be judged by her neighbours and seen as a ‘grass’, but when the full story emerged about what had happened, she found everyone was supportive.
“The community has supported me really well,” she said. “They didn’t look at me as a grass. I told people he was being greedy and it got the better of him. I told them he’d been taking my money. Once I told them what he’d done, they were on my side. I’ve had a lot of support and a lot of people say fair play to you, you should have done it long ago.”
Caroline said she would advise anyone in the same position to contact Stop Loan Sharks without delay, especially as the summer holidays arrive and bring with them extra costs.
“One of the things I borrowed for was school uniform and I was struggling, but now I know there’s a lot of support in in the community. And people should be aware of that. And if you are in trouble, get in touch with Stop Loan Sharks.
“They have supported me from day one and they’re still supporting me now it’s all over with. Without them I wouldn’t have been able to do it. It was such a relief.
“I am a lot better now. Now I’ve got my money to myself, I don’t spend it on myself I spend it on my kids and my grandkids. I had lost all hope, I was just existing not living, then I found Stop Loan Sharks.”
Dave Benbow, Head of the England Illegal Money Lending Team, the official name for Stop Loan Sharks, said: “Caroline’s story is one we see far too often. A parent trying to provide for their children, struggling to make ends meet, is offered what seems like a helping hand by someone they know and trust. But that is often how the cycle of illegal lending begins.
“Thankfully, Caroline found the courage to come forward and ask for help. By speaking out, she enabled us to support her and, in this case, take action against the lender.
“We know it can be difficult to make that first call, but we want people to know they will be listened to and supported every step of the way. We never judge, and all information is treated in confidence.
“Caroline’s experience also challenges the stigma that can prevent people from seeking help. The blame and shame lie entirely with the lender, not the borrower.
“We are extremely grateful to Caroline, not only for reporting what happened, but for choosing to share her story. By speaking out, she is helping others recognise the warning signs and showing that there is a way forward for anyone trapped by an illegal lender.”
Caroline’s story can be viewed on the Stop Loan Sharks YouTube channel: https://www.youtube.com/watch?v=PZ4Wi2SMkEA
Many illegal money lenders are well known within their communities and are often introduced to borrowers through friends or family members. They are unregulated and give loans with no paperwork, adding high charges. They can resort to threats, intimidation and even violence if repayments are not made.
The IMLT is a national organisation that was set up over 20 years ago to investigate and prosecute loan sharks and support borrowers. It is hosted by Birmingham City Council, but works across England.
Anyone affected by illegal money lending should call the Stop Loan Sharks 24/7 Helpline on 0300 555 2222 or send a WhatsApp message to 07700 102773. Support, including a Live Chat service, can also be accessed online at www.stoploansharks.co.uk
Live Chat and WhatsApp are available 9am to 8pm, Monday to Friday.
