Written question asked by Graham Allen (Labour) on Friday, 29 October 2004, in the House of Commons. It was due for an answer on Tuesday, 9 November 2004. It was answered by Gerry Sutcliffe (Labour) on Tuesday, 9 November 2004 on behalf of the Department of Trade and Industry.

Dept of Trade and Industry

Question: To ask the Secretary of State for Trade and Industry, what her policy is on loan sharks; and if she will make a statement. - Inc figures.

Answer: Mr. Allen: To ask the Secretary of State for Trade and Industry what her policy is on loan sharks; and if she will make a statement. [195772] Mr. Sutcliffe: Loan sharks are moneylenders who operate illegally and unregulated outside the current Consumer Credit Licensing regime. Illegal loan sharks prey on vulnerable consumers and their sometimes brutal methods of obtaining repayment can cause great suffering and hardship in communities. To tackle this problem on 6 September 2004 I launched the Loan Shark Pilot, which will be operated by Birmingham and Glasgow Trading Standards Department. Both Departments have established teams of investigators who will investigate complaints received from members of the public about illegal money lenders. The Government have committed £2 million over a period of two years to the project. A campaign has commenced in both cities advertising the presence of the illegal money lending teams and they have both been inundated with calls from members of the public. The teams are already investigating more than 40 live cases. The Birmingham team has recently announced that one arrest has been made.

Secondary information

Type: Written question
Reference: 195772; 426 c588-9W
Session: 2003-04
Subjects: Consumers Debts Credit Birmingham Finance Government assistance Glasgow Protection Loans Money lenders Regulation Unfair practices
Contains statistics: Yes
Link: View this Written question on www.publications.parliament.uk