Shropshire Council moves to put bite on loan sharks
Shropshire will continue to work with Birmingham City Council to clamp down on loan sharks.
Shropshire Council's cabinet has recommended plans for the extension of a joint initiative with the Midlands authority.
It would see the illegal money lending team at Birmingham City Council, who are funded by the Government's Department of Business, Innovation and Skills, investigate and prosecute illegal money lenders in Shropshire.
The original arrangement has been in place since 2013, when the cabinet voted to delegate the function to the unit and away from local trading standards officers.
A vote to recommend the extension of that arrangement took place at a cabinet meeting at Shirehall this week, and is expected to be ratified at a full council meeting later this month.
"It's a very specialist area and they have the expertise to carry out the work," Councillor Malcolm Price told the meeting.
Illegal lending is a growing problem in the UK.
Under UK law, money lenders must be licensed by the Financial Conduct Authority, and illegal money lending can cover a range of activities ranging from a licensed lender acting unlawfully, to individuals who offer cash loans without being licensed at all, more commonly referred to as loan sharks.
Government statistics estimate that between 165,000 and 200,000 people nationally are indebted to loan sharks.
Rates of interest offered by loan sharks have been known to be as high as several thousand times that of licensed lenders such as high street banks, and can result in violence for those who are unable to pay.
Birmingham City Council's illegal money lending team was established as a pilot operation in Great Britain with a special remit to investigate and prosecute illegal money lenders.
So far, the team has secured more than 300 prosecutions for illegal money lending and related activity, and has written off £64 million worth of illegal debt for over 25,000 people, according to statistics supplied by National Trading Standards.
The illegal money lending team can be contacted, in confidence, on 0300 555 2222, or e-mail reportaloanshark@stoploansharks.gov.uk or by text to loan(space)shark(space) + your message to 60003.
