Loan sharks: Striking 165,000 homes
Government to attack loan sharks
Wednesday, 19 Sep 2007 12:03
Over 165,000 households with debt problems are exploited by loan sharks.
Victims, mainly in deprived areas, face astronomical interest rates and the threat of violence, intimidation or blackmail if they fall behind with payments.
The government is now providing £3 million to loan shark teams across the UK to hunt down unscrupulous lenders.
"Loan sharks are criminals who prey on vulnerable and desperate people. We are committed to shutting these thugs down and bringing them to justice," John Hutton, secretary of state for business.
"Our targeted teams will make sure anyone who feels trapped or scared has the confidence to report these crooks and put a stop to their illegal behaviour."
Pilot loan shark teams in Birmingham and Glasgow have identified over 200 illegal lenders and shut loan books worth £3 million.
"Loan sharks and illegal money lenders must be stopped from preying on vulnerable individuals," said Teresa Perchard, director of public policy at Citizens Advice.
"People in desperation who borrow money from illegal lenders often become victims of intimidation, threats and in some cases serious violence."
She added: "The government has invested £45 million in face to face debt advice through agencies like the CAB service, and we need to encourage people who have serious money problems that advice really can help them to find a safe solution to their crisis."