For years, my mother-in-law has purchased a huge number of holiday gifts for us. This is frustrating because at other points in the year, she'll ask for small loans ($500-$1000 or so) to pay for necessities.
The other frustrating part of this is that we don't want the presents. She typically has two strategies. Either she'll overhear that one of us likes something (for instance, I like using pineapple juice as a mixer, and one year she showed up with a bag of 200 individual-serve cans of pineapple juice), or she'll just buy stuff she thinks we should like (she'll show up with a few of those 20-gallon plastic storage totes full of clothes for my wife to try on...which my wife hates to do in the first place).
She's an extremely stubborn woman, and we're not sure we can take this much longer. It creates a huge mess, it creates a huge expense for her, and it creates an honestly embarrassing situation when we have to say "Thanks for spending tons of money on us, we don't want anything you brought" (in a much nicer tone, of course).
Edit: to answer some questions...
She does pay the loans back.
As for refusing gifts, we've done that a few times, but it's typically a chore - just a lot of explaining for each individual item how we don't have space, or we don't really think we'd get a great chance to use it, etc. - which she typically argues against.
She asks for loans because she's bad with money, as far as I can tell. She works, but doesn't make a lot of money, and she has awful spending habits.