Up to 300,000 people in Scotland are at risk of falling victim to loan sharks, it has been revealed.

In one case, a single mother was threatened with assault by a loan shark after borrowing £250 to buy her toddler son a bed.

The woman initially kept up with the payments of £25 of interest every fortnight.

However, she couldn't pay after Christmas because she needed to top up her prepayment meter to keep the heating on.

The loan shark demanded double the payment the following week and, when she missed the next meeting, he turned up at her door and threatened to assault her and her son.

The worrying case was reported to the Scottish Illegal Money Lending Unit (SIMLU) which helped the woman access a food bank, receive debt and welfare advice, find support groups, and arrange a volunteering opportunity.

Research from the consumer watchdog found that up to 300,000 people in Scotland are at risk of falling victim to loan sharks.

SIMLU is warning people to be aware of the risks posed by illegal moneylenders, especially in the build-up to Christmas.

Fiona Richardson, chief officer of Trading Standards Scotland, said: "It is truly shocking that loan sharks are seeking to take advantage of the cost-of-living crisis by targeting people who are struggling to pay their heating bills and put food on the table.

"The Scottish Illegal Money Lending Unit has handled some terrible cases where people have been enticed into borrowing money only to find themselves threatened with violence when they cannot meet sky-high interest repayments."

SIMLU’s advice is never to borrow money from an illegal lender.

Those who have done so should not feel guilty or ashamed because the loan shark is the one committing the crime, not them.

Ian Murray, Scottish Secretary, said: “I’d urge anyone who has fallen victim to the criminals peddling these illegal inflated loans to contact SIMLU so that they can get help and advice and also so these loan sharks can be stopped.

“We need to put a stop to criminals who prey on people who are struggling financially when they are at their most vulnerable.”