Brummie shark-busters to hit Wiltshire

In a bid to stamp out illegal money-lending Wiltshire Council is to call in experts from Birmingham City Council. WC hopes this will have a significant impact on the problem, which its own trading standards team can't cope with alone.

A report to the April WC cabinet meeting explained the scheme, which has now been agreed by councillors.

If you're lending money commercially you need a license. Operating a consumer credit business without a license is a criminal offence, though the maximum penalty is only a £5,000 fine and/or two years imprisonment. As well as unlicensed actitvity there may be a problem of licensed operators not following the rules.

Birmingham have been running a pilot operation to combat loan sharks with funding from the government. They're now in a position to help other councils, with most of the costs still being met by the Treasury.

Like the drugs trade, loan sharks generate other forms of crime. Borrowers who have difficulty repaying can end up owing thousands of pounds due to the extortionate interest rates. They can face intimidation and violence and may themselves turn to crime to attempt to pay off the debts.

At the same time as cracking down on illegal activity the team will educate those who need to borrow money about the safe ways of doing it such as Credit Unions.

The four objectives of the scheme are:

- to quantify the extent of loan shark activity in Wiltshire and work out the best way to tackle it.

- to create a climate where victims will come forward without fear of retaliation.

- to change the perception that loan sharks can operate with impunity.

- to help victims manage their finances.