Loan sharks to become endangered species

Measures to protect consumers from loan sharks are being rolled-out nationwide, Gordon Brown said today.

Schemes taking on loan sharks have been trialled in Birmingham and Glasgow, and now funding has been put in place for every UK region to target them.

The government plans are designed to improve financial advice for people targeted by loan sharks as well as exposing and prosecuting those charging illegally high interest rates on loans.

"Loan sharks are a blight on some of the least well off communities, and so I am pleased to see the success we are already having in tackling these criminals and helping their victims," said Treasury minister Ed Balls.

"Today's announcement will bring help to more victims nationwide while also sending a further warning that these illegal and unacceptable practices will not be tolerated."

Specialist teams in the West Midlands and Scotland have been working for the last two years to take on people giving quick cash loans with illegal interest rates - often using intimidation and the threat of violence to extort large sums of money in return.

These efforts have resulted in a number of high-profile prosecutions.

Funding for these schemes to be extended to locations including Sheffield, Leeds/Bradford, and Liverpool was announced in December. Such schemes will now be rolled out across the country, focussing on areas where the problem of illegal lending is more common.

"The pilots in Glasgow and Birmingham have already put some of the worst bullies in Britain behind bars. Today we send a clear message to loans sharks everywhere in Britain. There is no hiding place. Wherever you are, we will seek you out, prosecute you and make you pay," said trade and industry minister Ian McCartney.

The National Consumer Council said it was "delighted" by the news, but added such schemes needed support to be effective.

"It's vital that these new projects are supported by efforts to make more affordable credit widely accessible in poor communities," said Claire Whyley, NCC deputy director of policy.

"Removing illegal lenders from these communities not only frees their victims from threats and intimidation, but can help people find ways to borrow more cheaply."