Council backs loan shark crackdown

Date article online: 20/09/2007

Rochdale Borough Council is backing a Greater Manchester wide initiative to tackle loan sharks.

Cabinet member for the environment and sustainability, Councillor Wera Hobhouse said: "Loan sharks prey on the vulnerable and I am pleased we are working with colleagues across Manchester to crack down on them.  As far as I am concerned there is no place for loan sharks in this borough and we will support efforts to put them out of business."

Through Trading Standards North West - a regional partnership of trading standards departments - Greater Manchester's ten local authorities have decided to work with Birmingham City Council's specialist Illegal Money Lending Team - set up in 2004 - to operate the scheme.

Birmingham has already seen significant success in tackling loan sharks and it means that Rochdale and other Greater Manchester authorities will benefit from the wealth of experience and expertise that the team has built up during the past two years.

The government is ploughing an extra £180,000 into the initiative and as well as tackling offenders, offers supports to victims.  The team will refer those affected on to debt and money advisors and, where appropriate, sources of affordable credit such as Credit Unions.

Across the UK, 165,000 households are exploited by loan sharks every year. 56,100 (34 per cent) of them are in the North West. Victims are not only charged astronomical interest rates but very often face violence, intimidation or blackmail if they fall behind with payments.

The funding for the project has come from the Treasury's Financial Inclusion Fund as part of a Greater Manchester wide initiative.