Brighton and Hove campaign to leave loan sharks dead in the water (From The Argus)

Brighton and Hove campaign to leave loan sharks dead in the water

1:00pm Thursday 6th August 2009 in

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The fight against loan sharks was given extra teeth with the launch of a special team to offer support to victims.

The dedicated Government-funded unit wants to hear from anyone who has found themselves in debt to unlicensed lenders.

Council workers in Brighton and Hove are being briefed to spot the warning signs in people they work with and encourage them to get help.

The Trading Standards South East illegal money-lending team launched its Stop Loan Sharks project in the city yesterday.

They stressed no investigations are currently under way in the city but want to gain information from the community about any problems which have gone unreported.

Councillor Dee Simson, Brighton and Hove City Council’s cabinet member for community affairs, said: “Loan sharks target vulnerable people, charging them extortionate interest rates and rarely offering paperwork or a repayment plan.

“As a debt to a loan shark is not legally enforceable they often resort to violence and intimidation to get what they want.

“We are not aware of particular problems locally but, with many people struggling to make ends meet during the recession, it is important to alert people and warn them not to get involved with loan sharks.”

The launch came on the day a Derbyshire loan shark was jailed for five years for extorting £800,000 from people living on housing estates in Manchester.

Since the scheme began in Birmingham it has dealt with more than 10,000 victims around the country and helped secure 50 years of prison sentences.

As well as hunting down and prosecuting loan sharks, the scheme is aimed at preventing the problem.

“Financial inclusion officers” are speaking to credit unions, housing associations and community groups to help them spot warning signs that their clients are using illegal moneylenders.

They can then offer advice about legal credit sources and help them start savings accounts.

For advice from the Stop Loan Sharks team, call its confidential 24-hour hotline on 0300 555 2222, text loan shark and a message to 60003, email reportaloanshark@stoploansharks.gov.uk or visit www.direct.gov.uk/stoploansharks.