Increase In Loan Shark Activity In Wales As Recession Deepens

Mon, 27 Apr 2009

Hundreds of people in Wales have fallen victim to loan sharks since the start of the economic downturn, new figures have revealed.

According to figures released by Plaid Cymru, some 827 hard-pressed individuals have suffered at the hands of loan sharks since February 2008.

The Wales Illegal Money Lending Unit (WIMLU) - a team of eight Trading Standards officials targeting unlicensed lenders who charge extortionate interest rates - has arrested 29 people for illegal money lending, laundering, blackmail and assault since its launch 14 months ago.

A total of £54,300 has so far been seized and £500,000 worth of property and accounts frozen. Loan books recovered show more than £1m has been loaned by those suspected of charging super-high interest rates .

The unit revealed how the recession is forcing more struggling families and individuals, including a growing number of middle-class professionals, to seek funds from loan sharks.

Steven Hay, spokesman for the WIMLU, said: "Loan sharks are causing misery and despair across Wales . Officers from the Wales Illegal Money Lending Unit are having a growing impact by putting them out of business and wiping out the debts that hang over victims."

Cardiff council’s executive member for communities, housing and social justice, Councillor Judith Woodman, commented: "Thousands of households face debt problems in Wales and are exploited by illegal money lenders every year."

"The Wales Illegal Money Lending Unit is working in partnership with other agencies and local authorities throughout Wales to bring an end to the exploitation of some of our most vulnerable members of society."
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