John Hutton, the Secretary of State for Business, Enterprise & Regulatory Reform has announced a crackdown on illegal money lenders following increasing concerns of over-indebtedness.
The Government have pledged £3 million to the initiative, teams of undercover investigators will work with Trading Standards to locate and prosecute illegal lenders. In addition, victims of these lenders will be offered support and debt counselling.
Loan sharks operate by targeting the most vulnerable members of the community. These people believe that they have no other option but to borrow from illegal lenders as they are not aware of their options.
Tom Nelson, Head of Secured Lending at Zen Finance advises "consulting a professional as soon as you become aware of a problem, this will ensure you receive the best possible advice and are aware of all possible solutions such as a secured loan, remortgage, debt management plan or IVA."