Loan sharks targeted in clampdown

Financial investigators are gathering intelligence to identify loan sharks

Illegal loan sharks in Rotherham are being targeted in a crackdown by a team of undercover investigators.

The specialist team from Birmingham City Council has joined forces with Rotherham council's trading standards officers to help tackle the problem.

Rotherham council said: "Some of the most vulnerable people in our community are overcome by debt to illegal lenders and are consequently living in fear.

"They have become easy targets during the current credit crunch."

Margaret Statham, trading standards manager for the council, said: "Many people end up in debt with illegal money lenders having borrowed only small sums of money and ending up owing excessive amounts.

"They do not know where to turn and, as there is no legal way of collecting the debt, the lenders threaten violence to collect it.

"We do not want this sort of thing in Rotherham and the 'Stop Loan Sharks' initiative gives us the enforcement tools to deal with the illegal money lenders.

"It also provides advice and guidance to those people who need financial assistance."

Birmingham council's Illegal Money Lending Team was set up in 2004 as a pilot project by the Office of Fair Trading.

The scheme has since been extended to cover the Leeds, Bradford, Liverpool and Sheffield areas.