The dangers of loan sharks are being highlighted as it is estimated that more than 1 million people are borrowing from illegal lenders.

The England Illegal Money Lending Team is running their national Stop Loan Sharks Week campaign which ends today.

A report published by the centre for social justice estimated that 1.08 million people in the UK could be borrowing from an illegal money lender – more commonly known as a loan shark.

Loan sharks are criminals who lend money at extortionate rates of interest, threatening significant harm to borrowers if they do not pay.

The ruthless lenders use coercive control and psychological threats to keep victims trapped in an endless cycle of debt for years, often with devastating consequences.

This year’s campaign, Let’s Talk Loan Sharks, supported by Lancashire Couty Council, will focus on reaching vulnerable people who may not realise they are being exploited by loan sharks, as well as raising awareness of the support available.

Cabinet member for health and wellbeing, Cllr Michael Green said: “With the rise in the cost of living, many people are unfortunately going through difficult and worrying times right now.

“My advice to people is this, however bad your financial situation is, borrowing money from an illegal moneylender is not the answer. Loan sharks mercilessly prey on the most vulnerable people in our society and will use deceptive tactics to trap them in a cycle of debt and fear.”

New figures released by the IMLT show that over one-third, 35 per cent, of victims had sought debt advice but were reluctant to report the loan shark to their support worker due to fear of reprisals from the lender.