Move to crack down on loan sharks

Business Secretary John Hutton announced that localised pilots to bring unscrupulous lenders to justice would be extended to every region of the country.

Since 2004, specially-trained trading standards officers working with police have hunted down 200 loan sharks and shut down loan books worth more than £3 million in Birmingham and Glasgow.

Those teams will now be expanded and joined by new centres doing the same job around the rest of the country. The move is part of the Government's efforts to reduce financial exclusion.

Every year, more than 165,000 households with money problems are thought to be exploited by loan sharks, who charge huge rates of interest and often use violence and intimidation if repayments are not met.

Mr 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 behaviour.

"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 £3 million rollout will fund the Birmingham team's expansion into the South East and the East of England, and Glasgow's into the rest of Scotland.

New teams will be set up in the North East, the East Midlands, the South West, Wales, the North West and Yorkshire and Humberside.