Loan Shark Crackdown Launched In Peterborough

Wed, 06 Feb 2008

The town of Peterborough has begun a crackdown on illegal money lenders, more commonly known as loan sharks.

The three-year operation follows on from the success of a similar initiative set up in Birmingham in 2004, which has already seen 27 potential loan sharks being uncovered and £2 million of illegal debt - owed by more than 1,300 victims – being cleared.

The crackdown scheme is now being expanded to Peterborough, with the Illegal Money Lending Team from Birmingham City Council set to join forces with Trading Standards officers from Peterborough City Council to help combat loan sharks in the area.

A recent study by the Citizens Advice Bureau revealed that the average household debt in the city was at £14,000 – nearly double the national average of £8,700.

City officials fear the high level of debt is largely attributed to the over-reliance on illegal lenders by cash-strapped families looking to receive help with debt problems .

Graham Murphy, Councillor and cabinet member for environment and community safety, said: "This intelligence-led campaign is extremely important, both for Peterborough's more vulnerable residents and in the wider battle against crime."

"Loan sharks have been known to extort massive repayment rates - in some cases as much as 117,000 per cent – that imprison victims in poverty," he added.

The ground-breaking taskforce from Birmingham City Council is also set to launch the crackdown in Merseyside, with eight councils expected to join forces for the scheme to help people in the area being targeted by illegal money lenders.
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