Department for Business, Innovation and Skills
 Printable version
|
 E-mail this to a friend
|
Hutton announces biggest ever crackdown on loan sharks
John Hutton the Secretary of State for Business, Enterprise & Regulatory Reform today announced the biggest ever nationwide crackdown on loan sharks and illegal lending. New specialist teams have received funding of almost £3 million to hunt down loan sharks across England, Wales and Scotland.
The new teams are part of the Government's drive to improve financial inclusion and sit alongside the £47.5m Face to Face debt advice projects.
Research, released today, shows that since 2006 these projects have helped around 45,000 people with debt problems - including many victims of loan sharks - and recruited over 500 new debt advisors.
More than 165,000 households facing debt problems, mainly in deprived inner-city areas, are exploited by loan sharks every year. Victims are not only charged astronomical interest rates but very often face violence, intimidation or blackmail if they fall behind with payments.
John Hutton said:
"Loan sharks are criminals who prey on vulnerable and desperate people. We are committed to shutting these thugs down and bringing them to justice.
"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 behavior.
We are determined to make it is as hard as possible for these criminals to prosper and have invested nearly £50 million into providing financial help and advice for those traditionally vulnerable to this type of exploitation."
The Department for Business' nationwide loan sharks crackdown follows the success of pilot anti-loan shark teams in Birmingham and Glasgow, staffed by specialist Trading Standards officers working closely with the police. Since September 2004 these teams have identified more than 200 illegal lenders and shut down loan books worth more than £3million.
Funded by the Treasury's Financial Inclusion Fund, the rollout will see new loanshark teams set up in:
* London - focussing on Hackney, Newham and Tower Hamlets.
* North East -focussing on Newcastle and Tyneside.
* East Midlands - focussing on Nottingham, Leicester and Derby
* South West - focussing on Bristol and Plymouth.
* Wales - focussing on Cardiff, Swansea and the Valleys.
The Birmingham team has been given funding to expand into:
*
South East and East- focussing on Peterborough, Great Yarmouth,
Lowestoft, Portsmouth, Southampton and Hastings.
* North West - focussing on Merseyside and Manchester.
* Yorkshire and Humberside - focussing on Sheffield and Leeds.
More funding has also been given to the team based in Glasgow to step up its operations across the whole of Scotland.
Economic Secretary to HM Treasury Kitty Ussher said:
"Loan sharks prey on the least well off, using intimidation and violence to extort payment. The success of the pilots shows what can be accomplished by setting up dedicated teams to tackle illegal lending in the community.
"This crackdown sends a clear message that these practices are unacceptable and will not be tolerated, and ensures that the victims of loan sharks have the advice and support they need."
The new projects will prosecute and investigate loan sharks and offer advice and support to their victims, working together with voluntary organisations and debt advice agencies.
Notes for editors
1. An independent research report which assesses the initial progress of the Face-to Face debt advice project has been published today and is available from http://www.berr.gsi.gov.uk
2. Face to Face debt advice projects unite Citizens Advice Bureaux with members of the independent advice sector to increase the provision of free debt advice to the country's most financially excluded and vulnerable people. There are 16 projects in total.
3. Grant Holder Total Advisers Total Clients Seen
East 20 2,014
East Midlands 43 4,018
Merseyside 34 4,398
London 68 4,536
North East 66 6,179
North West 57 5,398
South East 16 1,021
South West 34 3,231
Wales 37 2,284
West Midlands 66 5,496
Yorkshire and Humber 71 5,848
Total 513 44,422
Figures as of June 2007
Source - Submissions to BERR from
local projects
Department for Business, Enterprise & Regulatory
Reform
7th Floor
1 Victoria Street
London SW1H
0ET
Public Enquiries +44 (0)20 7215 5000
Textphone +44
(0)20 7215 6740
(for those with hearing impairment)
http://www.berr.gov.uk
