- 05
- Jan
The Economic Secretary to the Treasury, Ed Balls, and Trade and Industry Minister, Ian McCartney, pledged £1.2 million to provide enforcement teams to tackle the UK’s illegal money lending problem. This is great news for the banks and reputable loan firms.
The funding announced today allows for expansion of pilot projects. These initiatives are important to the Government’s strategy of increasing the availability of credit for those who are currently burdened with financial exclusion.
Approximately 165,000 households in the UK are forced to use illegal money lenders. Half of these victims are located in the poorest parts of the country, concentrated in deprived urban housing estates, where it is difficult to obtain a loan legally.
These teams overcome the barriers that arise from the fear and intimidation of victims, and by providing legal support for victims. The teams have already been responsible for the prosecution of several high profile loan-sharks in Birmingham and Glasgow.
Ed Balls, said:
“This important project has helped give victims in the West Midlands the confidence to come forward, an awareness of better ways to borrow and helped us to build evidence against loan sharks to bring them to justice. The money we are announcing today means that not only will the existing projects in Birmingham and Glasgow continue to serve their communities, but that this important initiative will be expanded to other parts of the country also suffering from this blight.”
The specialist teams have had considerable success in tackling illegal lending, according to the Department of Trade and Industry (DTI).
