Instead of spending his retirement relaxing, or taking up a niche hobby, Nigel currently spends part of his day tracking down pensioners.

The former police officer was just 49 when he retired. Feeling like he was “too young to do nothing”, he went to work as a loan shark investigator.

But he could never have imagined his new job would include hunting down illegal money lenders in their eighties.

He is a member of Stop Loan Sharks Wales (SLSW), a small unit that targets illicit money lenders.

And while most loan sharks are dogged in their harassment and intimidation of anyone who owes them money, not everyone fits the ‘Phil Mitchell’ stereotype.

In one recent case, an elderly woman in her 80s, was given a police caution after she was found to be making illegal loans.

She had used her son – who was in his 40s and had previously been to prison – to help threaten people into paying up.

“But because of her age and the amount involved, she was only issued a caution,” says Ryan, a client liaison officer with the unit. The money involved totalled several thousand pounds.

“As far as we could prove she was only lending to one individual,” Ryan adds, calling it “vicious, opportunistic targeting”.

Another woman in her 80s, currently under investigation by the unit, began making personal loans but quickly became threatening when people couldn’t pay her back.

“She was scaring [victims] with ‘I know where you are, I know where you live’,” Nigel says.

Her case is ongoing and has not yet reached the courts, so few details can be given by SLSW.

‘A tsunami is coming’

Loan sharks, of all ages, are nothing new but there are fears they are profiteering from the misery brought about by the ongoing economic crisis.

But a backlog at the courts, worsened by the COVID-19 pandemic, and a time lag with investigations means the full effects of the cost of living crisis have yet to be seen.

“There might be a bit of a tsunami coming,” Nigel warns.

Ryan says it is “fairly uncommon” to see illegal lenders in their eighties. “Most people are of working age, but it is about a 50-50 split between male and female,” he adds.

Who are loan sharks?

Often they hide in plain sight and are well-known in their local communities.

Nigel and Ryan have spoken to Sky News on condition of anonymity, in part because of the threats the team faces doing their job.

They never work in the same area where they live but after one of his colleagues was accidentally spotted by a loan shark, their car was smashed and protection had to be put in place.

New research commissioned by their unit alongside the Welsh government, confirms fears that current financial hardships could drive more people in Wales to borrow from illegal money lenders.

Some 38% say they are more likely to need to borrow money or credit this year to cover everyday costs, and 50% of those borrowing are doing so to fund everyday living expenses – from food and bills to school uniforms.

Click to subscribe to the Sky News Daily wherever you get your podcasts

Established 15 years ago, SLSW is a government-funded agency that works alongside – but is entirely separate from – the police, local authorities, charities, and other agencies.

Most of the unit’s employees are former police officers.

‘Grooming’ their victims

Illegal money lenders, Nigel says, often build up a friendly rapport and lure people in by letting them off the first repayment.

But then, says Nigel, it often gets to the stage where they can’t pay it back.

The relationship is “pretty much grooming”, adds Ryan, who works closely with victims in his role, drawing comparisons to drug dealers or domestic abuse: “People are always stepping on eggshells, they get trained to act in a certain way.”

He says: “You also find people pay different amounts. If you’re not easy to intimidate they’ll still lend to you, just on more favourable terms.

“But the more vulnerable you are, the worse the penalties.”

Read more:
‘I was suicidal’: Loan sharks pose as friends to trap victims in cost of living crisis

Individual investigations into the illicit world of illegal money lending can take anywhere from a month to several years.

“We might not even have a victim in the first instance, we might only have the intelligence,” Nigel says.

The Wales unit has 11 live cases currently, with the oldest going back to February 2020. In some years, they might close as many as eight investigations.

And these loan sharks aren’t hidden in the depths of the dark web – these are people well-known in their local communities.

Living off £5 a week

In one case, a loan shark in North Wales would pick up his victims up just before midnight and drive them to a cash point just as their benefits were deposited in their account.

They would take the money, giving their victim mere pocket money to live off – in one case, as little as £5 a week – and keep the rest of the money, including the bank card.

In another, a cooker, fridge, and microwave were taken from a victim’s house when they fell behind with payments.

The maximum sentence

The maximum prison sentence for a loan shark, if successfully convicted, is two years. According to Nigel, investigators will often look to increase that by adding associated crimes to the charge sheet such as actual bodily harm, and sexual assaults.

The highest sentence that Nigel’s unit has achieved is three-and-a-half years, which was handed down to Robert Sparey, 60, of Caerphilly, in 2017. Sparey, who had not worked since 1990, targeted vulnerable people for more than 20 years and used a disabled family member as a “front” for his operation.

He threatened to burn a woman’s house down with her children inside if she did not pay, and told another he would find “heavy-handed” people to enforce the debts.

Similarly, the unit was active in the prosecution of Chris Harvey, a father of 21 children, for three years and four months in 2015. Harvey, who was also from Caerphilly, charged his own family up to 400,000% interest on illegal loans.

£40k in unexplained cash

Among the unit’s more recent successes include the arrest of Clayton Rumbelow from Llanelli who was jailed for 10 months for illegal money lending in October 2022.

Despite being on benefits and with no other legitimate source of income, Rumbelow spent tens of thousands of pounds on holidays over two years. He bought expensive cars and even decorated his house with intimidating animal statues.

“When I went through his bank accounts, I found £40,000 worth of unexplained cash deposits,” says Nigel.

Some people don’t realise they are being exploited or even feel grateful to the lender for helping them out.

One victim told Nigel: “I don’t know what I would have done without him. I couldn’t get money from anywhere else and I couldn’t feed my kids”.

People are also often led to believe that their loan shark debts are lawfully enforceable. In Porthcawl, a doorman moonlighting as a loan shark wrote up contracts for his clients.

“When you actually looked at the contracts themselves, it looked like they came from somewhere legally enforceable,” says Nigel.

“People signed these contracts to buy groceries and believed he was a lawful money lender. But he wasn’t, and these people were desperate and would agree to anything.”