DEPARTMENT FOR
BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2008/194)
issued by COI News Distribution Service. 12 September 2008
New specialist
teams set up by the Government to crackdown on loan sharks have
hit the ground running.
Consumer Affairs Minister Gareth Thomas said:
"The new teams have more than 230 investigations underway
into loan sharks. The total value of the loans being looked into
is more than £3million. The investigations have started to lead to
arrests, charges and penalties with more activity expected over
the coming months.
"These teams are working around the clock to ensure that the
credit crunch doesn't drive people into the murky world of
illegal money lenders."
Already the new teams have successfully prosecuted four people:
* Brian Darwent, a 37 year old barber from Sheffield, received a
9 month prison sentence after ripping off schoolchildren and
housewives. He charged 100 per cent interest on cash loans,
keeping games consoles, bank cards and other valuables until debts
were paid off.
* Scott Anthony, a 41 year old from Basildon, received a 9 month
prison sentence, suspended for two years, for illegal money
lending. He had been operating his business from his home for a
number of years, charging half the amount borrowed as interest.
Some loans reached an APR of 384%. Anthony was also ordered to
carry out 80 hours community work.
* Michael Finn, aged 56, and Stephen Sutcliffe aged 42 from Leeds
were sentenced to 200 and 180 hours of unpaid work respectively.
Both men used to work for a legitimate home credit company but
when they left following disagreements they began their own
unlicensed business. The men poached clients from the old company
and charged interest rates of more than 1,068 per cent APR. They
often asked for the first repayment at the time the loan was given.
17 people have been charged with offences and are awaiting trial:
* A 26 year old male from Dagenham has been charged with illegal
money lending and disguising criminal property. He is alleged to
have lent £71,000 to 23 victims with interest rates of 100%. The
case is due to be heard in Snaresbrook Crown Court on September
15, 2008.
* A 55 year old male shopkeeper from Gwent has been charged with
illegally lending money to school children. He is alleged to have
taken collateral in the form of mobile phones and jewellery. He is
due to appear at Cardiff Magistrates Court on 6th October 2008.
* A female from Stockton has been charged and is on court bail
awaiting committal to Crown Court for illegally lending over
£20,000 over a 2 year period to around 40 victims and using
threats of violence and intimidation to recover her repayments.
She's also charged with conspiracy to supply Class A drugs.
The new teams are building on the huge success of pilot anti-loan
shark teams in Birmingham and Glasgow. Since September 2004 these
two teams have:
* shut down loan books worth more than £7million
* helped more than 6,000 victims
* seized and confiscated £260,000 in cash
* secured successful prosecutions which have resulted in
sentences totalling over 33 years for illegal money lending and
related criminal activity including assault, wounding, kidnapping,
blackmail and possession of firearms
* In Scotland more than 30 individuals have been reported to the
Procurator Fiscal
Government's multi-million pound investment means that there
is now a specialist team in every region of England and in Wales
and Scotland.
John Hutton announced funding for the new teams in September
2007. Most of the teams became operational towards the end of the
year after completing recruitment and other logistical arrangements.
Note to Editors
1. The anti-loan shark teams funded by the Department for
Business are staffed by specialist Trading Standards officers and
work closely with the Police
2. There are now teams in:
* London - focused on Hackney, Newham and Tower Hamlets
* North East -focused on Newcastle and Tyneside
* East Midlands - focused on Nottingham, Leicester and Derby
* South West - focused on Bristol and Plymouth
* Wales - focused on Cardiff, Swansea and the Valleys
* The Birmingham pilot team has expanded into Yorkshire and
Humberside (focusing on Sheffield and Leeds), the North West
(focusing on Merseyside and Greater Manchester) the South East and
East- focussing on (Peterborough, Great Yarmouth, Lowestoft,
Portsmouth, Southampton and Hastings)
* The Glasgow pilot team covers the whole of Scotland
3. The Department for Business Enterprise and Regulatory Reform
helps UK business succeed in an increasingly competitive world.
It promotes business growth and a strong enterprise economy, leads
the better regulation agenda and champions free and fair markets.
It is the shareholder in a number of Government-owned assets and
it works to secure, clean and competitively priced energy supplies.