DEPARTMENT FOR
BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (Reference
2007/055) issued by The Government News Network on 19 September 2007
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
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