The Argus has inspired the Government to announce new laws to crack down on loan sharks and companies offering credit at very high interest rates.

The legislation, announced in the Queen's speech this week, will be introduced in the next session of Parliament.

Details of the new consumer protection package are yet to be decided but the Queen announced: "Consumer credit law will be updated to provide greater protection from unfair lending practices and create a fairer and more competitive credit market."

Simon Burgess, Brighton and Hove City Council's finance spokesman and the South East representative on Labour's National Policy Forum, said his party took up the cause after an investigative article in The Argus helped win the argument to bring a change in the law.

Our report highlighted the scandal of firms offering loans with 440 per cent interest rates to families on the lowest incomes.

One company named Shopacheck was revealed to have a turnover of £150 million with staff boasting of £2,000 in repayments from people living in Whitehawk, Brighton.

Even today rogue companies visit Brighton and Hove homes offering loans at extremely high interest.

Coun Burgess took a copy of our story by reporter Sam Thomson to the policy forum and convinced members the public needed better protection.

He said: "This certainly will help combating the loan shark companies that go from door to door selling loans with the most incredible interest rates.

"I am delighted by this. It's personally very satisfying to have helped make a difference."

The proposed changes in the law have been welcomed by members of the City of Brighton and Hove Credit Union.

The co-operative has 1,200 members and total savings of £200,000. Loans are 12.68 per cent a year.

Martin Groombridge, the general manager of the union, said: "We have been campaigning for a long time for the Government to enforce fair treatment for customers.

"The problems are not just caused by loan sharks but traditional banks as well who have been hard selling insurance protection plans.

"We've come across pensioners who have been sold loan protection against redundancies.

"We've come against sharp practice - not illegal at the moment - with companies not making clear what the actual interest rate is and people being lent money with no assessment of whether they can afford to repay."