An investigation has revealed the aggressive and threatening methods used by predatory loan sharks in the UK

Exclusive figures released by the debt charity StepChange to the Mirror showed that around 14.5million people in the UK will struggle to afford Christmas this year

As one in four of us struggle to afford Christmas, a charity that helps people through their money issues has revealed the best way to not have a debt hangover in the New Year.

Shocking figures released by the debt charity StepChange exclusively to the Mirror showed that around 14.5million people in the UK will struggle to afford Christmas this year – which is a rise of 1.6million people since last Christmas. And those with children at home will be even more at risk, with figures showing one in three will struggle to afford Christmas

YouGov polling by StepChange showed that heartbreakingly, 10 children in every classroom across the county will have parents struggling to meet their festive commitments, and a further 3% - around 1.5million people - won’t celebrate Christmas at all because of cost.

Vicious shark Richard Dawson

Callous loan shark Richard Dawson charged interest rates of 100% after one week, and 200% after a fortnight. Two of his victims, a mum and her adult son, were both attacked, while the son was kidnapped multiple times after becoming involved with Dawson. Sheffield Crown Court heard how the man was forced into boot of 35-year-old Dawson’s car, taken to a cash machine and ordered to withdraw money. Simon Mortimer, prosecuting, said Dawson involvement with the pair began after the woman asked to borrow £5 for cider.

Dawson, a dad-of-three, wanted more money and forced the man into his car boot and taken to a cashpoint and ordered to withdraw more money. He told the woman "if she said a f****** word, he would be stabbing her son in the neck," the court heard. Mr Mortimer said: "It became common to put the man in the boot of the car to get money out."

Recorder Adrian Langdale KC said 124 cash credits totalling more than £16,000 from 16 different people had been received by Dawson. On his wife’s account, 106 transfers of more than £11,000 were received from 59 people, and 119 payments of more than £7,000 had been sent to 35 people.

The judge said words such as "loan", "owe", "borrow" and "lend" were found on the accounts. He said there were "at least 88 different customers or people who were being terrorised" by Dawson "into paying off money." He said repayments came to a total of £52,000. Dawson was jailed for seven years in May this year.

An elderly woman who operated as a loan shark, charging victims up to 40 per cent in interest, was ordered to pay back £173,000 in April. Tabitha Richardson, 83, of Newport, left one couple "trapped in a cycle of debt" and having to pay back more than their income every month. She had previously held a licence which allowed her to lend money legally but it had lapsed and she knowingly carried out her practices when unlicensed.

A couple who were in receipt of benefits and were unable to work due to their health conditions, were paying back more than their monthly income of £1,400 a month. When they missed payments, Richardson texted the male victim "Just ring me, you know I can find you" and "You have got to speak to me and let me know what’s going on before I come looking for you."

Another man, living in Pillgwenlly, first borrowed £2,000 from the defendant to cover the costs of Christmas. Richardson would attend his home weekly to collect repayments. He went on to take two or three loans a year and believed Richardson was employed by a registered company. His daughter also took out loans with Richardson as far back as the 90s and would pay interest of 40 per cent. She pleaded guilty to engaging in activity requiring a licence when not a licensee, carrying on a regulated activity when not an authorised/exempt person and money laundering. She was sentenced to 24 months imprisonment, suspended for two years.

Double bubble shark Horace Taylor

Horace Taylor, 73, targeted vulnerable people with extortionate interest rates and threatened them if they did not pay up. He told one of his victims: "You owe me another £500 — if I don’t get it, I’m gonna get the boys to smash up your house." Retiree Taylor from Cwmbran, charged "double bubble" interest — demanding his debtors pay double the amount they borrowed — and sometimes even higher rates. His targets had "significant health concerns and rely on the state for income support". In October last year Cardiff Magistrates’ Court heard that Taylor, who has never been authorised to lend money, met his victims in pubs he frequented in Cwmbran and Pontypool.

District Judge David Webster pointed out that Taylor had downplayed his crime despite his behaviour having a "substantial impact" on the victims. The judge described loan sharking as a "pernicious social evil" that targets "the most vulnerable in society". He sentenced Taylor to three months in prison suspended for two years.

Snapchat shark Rovin Mavunga

Rovin Mavunga used Snapchat to promote his illegal money lending business. The 24-year-old paid a social media influencer to advertise his services online and even used the app to threaten his victims when they couldn’t afford to make repayments. Simon Mortimer, prosecuting, said Mavunga offered short-term, high-interest loans to 130 borrowers through Snapchat over a 22-month period in a “organised, sophisticated and profitable illegal business”. The court heard he charged interest rates of just under 100% on loans and pocketed £140,000 in repayments from his debtors. He increased their repayments arbitrarily and added penalty charges with threats of violence for late and missed payments. One man took out 91 loans, demonstrating his extreme financial vulnerability. From one group of 35 borrowers identified through phone records, Mavunga made a profit of £25,000. He was jailed for 16 months in July 2021.

How to protect yourself from Christmas debt

Stepchange has been helping people take back control of their own finances for the last 30 years and their chief client officer Richard Lane, has said people need to be ready for aggressive advertising this time of year, and he has seven top tips to keep you and your family on track.

Stepchange’s Richard Lane has seven top tips for families this Christmas

Mr Lane said: “Whilst the Christmas season is a time of joy, celebration, and togetherness, our thirty years of experience tell us just how tough the festive period can be for so many people, who can find their finances stretched to breaking point.

“We often find that the period after Christmas, early into the New Year, is when people are most likely to see their debt levels soar, as spending on gifts, food, and celebrations can quickly lead to financial strain – a strain which then takes the form of a new year debt hangover.

“With aggressive advertising incentivising people to spend to enjoy Christmas, people need to prepare accordingly. With a little planning and awareness, you can enjoy the festivities without risking a pile of debt in the new year. Here are some practical tips to help you save money at Christmas, avoid debt, and access support if things start to feel overwhelming:

1. Start using a budget

It’s easy to lose track of your income and outgoings. But the best starting point is to create a realistic budget to afford your spending, and Christmas is no different. This is the first step to any kind of debt. Sit down and decide how much you can afford to spend and be honest with yourself about your finances, setting a limit that won’t push you into debt.

2. Be mindful of food and drink

The cost of Christmas meals can quickly escalate, especially if you’re hosting multiple gatherings or have a large family. Plan your meals in advance, make shopping lists, and avoid buying things you don’t need. You can also consider making some festive dishes from scratch instead of purchasing pre-made items, which can be both cheaper and healthier. Another great tip is to buy in bulk for items that are on offer, like festive snacks and treats. Once Christmas is over, make the most of your leftovers to prevent further spending – you can look online for some great recipes for using up leftover Christmas staples.

3. Limit social spending

While socialising is part of the season, it’s easy to overdo it when it comes to nights out, drinks, or costly events. Set a limit on how much you’re willing to spend and stick to it. If you’re attending multiple parties or gatherings, consider driving or sharing transport costs with others to keep things affordable.

4. Avoid high-cost loans, buy now, pay later, and borrowing on credit

It’s tempting to think of credit cards or high-cost credit as an easy solution to cover Christmas costs, but these methods can lead to serious financial difficulties in the New Year. High-interest rates and late-payment fees can quickly snowball, leaving you with even more financial strain after the celebrations are over. Stick to your budget and resist the urge to borrow if you can’t afford it. Buy Now, Pay Later, may often seem an attractive option, but you must remember it’s a credit product and like any other you have to make regular repayments.

5. Focus on experiences, not just presents

Instead of spending on material gifts, focus on creating memories that won’t put you into debt. Offer to help a loved one with a task or plan a fun day together, such as a walk in the park, a home-cooked meal, or a family movie night. These thoughtful gestures don’t have to cost a thing but can bring much joy.

6. Stay on top of your bills

Even if it’s Christmas, don’t let your usual financial commitments slide. Make sure you’re paying bills on time and continuing to monitor your spending throughout the season. Setting up automated payments for essential expenses can help you stay organised and avoid any unnecessary late fees or penalties.

7. What to do if you are struggling with debt

If you find yourself slipping into debt despite your best efforts, it’s important to know that there is support available. Many people feel embarrassed to reach out when they’re struggling, but addressing financial difficulties early can prevent them from becoming much worse.

StepChange Debt Charity is here to help, and we offer a range of services for people who need support with managing or overcoming debt. Our fully online service works around you and your schedule and remains fully confidential. Where needed, we have advisers on hand to provide tailored, non-judgmental advice, helping you explore your options for managing debt.

Ruthless criminals are continuing to take advantage of troubled times to prey on the needy in their own communities. We look back at some have been brought to justice when people have had the courage to speak up against them.

Sophia Martinez