This item was published during the term of a previous administration that ended in April 2007
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Crackdown on loansharks
08/12/2003
The Department of Trade and Industry unveiled a scheme
to crack down on illegal moneylenders today.
A trading standards team, to be based in Glasgow from
April 2004, will identify and target loansharks across
Scotland and bring them to court.
Deputy Communities Minister Mary Mulligan said:
"Loansharking is utterly corrupt, and I fully support
this attempt by the DTI to take illegal moneylenders out of
our communities. They charge extortionately high interest
rates and thrive on a culture of fear and dependence. They
prey on impoverished communities and are often involved in
other crimes such as drug dealing.
"The targeting of loanshark will help rid our streets of
those individuals who take advantage of some of our most
vulnerable and disadvantaged people.
"With DTI support, the Glasgow-based team will be
leading the way for Scotland in tackling illegal
moneylending. This is about targeting resources so that
criminals can be brought to justice.
"But it will be crucial to have money advice services
available in communities in the aftermath of operations to
remove moneylenders. This is a key objective of our
financial inclusion work, and we will be actively
supporting this scheme to make sure these services are
available.
"We have already provided 3 million pounds per annum
from 2002/03 to increase the provision of money advice
services in Scotland. This has resulted in 120 additional
money advisers across Scotland.
"Our work in tackling financial exclusion continues, and
I am committed to helping families and individuals with
money problems find a way out of difficulty without sinking
further into debt."