Campaign war on the loan sharks

The Office of Fair Trading joined forces with Trading Standards Illegal Money Lending Teams to release a new video urging people to report loan sharks.

It is also distributing around 200,000 leaflets and posters across the country.

An estimated 165,000 households in the UK use illegal money lenders, with half of these living in the most deprived areas of the country. The OFT said there were particular loan shark hot spots in Scotland, the North and the West Midlands.

But the group warned that not only did loan sharks typically charge "exorbitant interest", but they also often used violence and threats to enforce debts.

It added that while licensed lenders had legal obligations to keep proper paperwork and use fair collection methods, loan sharks often offered cash loans without paperwork and may also take benefit or bank cards as security.

The Stop Loan Sharks project was set up in 2004 and has so far helped more than 11,500 people and led to 31m of illegal debt being written off. It has also secured more than 60 years in prison sentences.

People can report a loan shark by calling 0300 555 2222, or by texting 'loan shark' and the details to 60003. Consumers can also send an email to reportaloanshark@ stoploansharks.gov.uk