Loan sharks - people who illegally lend money to unsuspecting consumers at repayment rates that are simply outrageous - are getting cracked down on in the United Kingdom thanks to a new national hotline that the government has launched. Designed to help victims of loan sharks, the hotline will allow other consumers to ‘shop' the lending companies, individuals, and organisations they are interested in using for a loan to see if they are considered loan sharks and lending money in an illegal manner.

The helpline provides loan shark victims a single point of call to report what has happened to them and then get help, says the Department for Business, Enterprise, and Regulatory Reform (DBERR). More and more people are turning to loan sharks to supplement their cash needs during the current global recession when they are turned away by legal lending institutions such as banks and trade unions. Unfortunately, dealing with loan sharks leaves them vulnerable to exorbitant interest rates on repayment and threats of physical violence if the money is not repaid on time or at all.

The helpline is intended to help the government-funded ‘Stop Loan Sharks' teams that rolled out through Great Britain, Scotland, and Wales in 2007. According to the DBERR, the teams have been able to identify and prosecute 60 loan shark offenders and there are another 90 still sitting the cases pending docket for review. The teams have supported around 7,000 victims of loan sharking since their inception.

One of the loan sharks that was taken into custody by the teams and is awaiting sentencing at the end of March is Paul Nicholson from Delamere. The 39 year old loan shark out of Cheshire has been known to threaten his victims with physical violence when they did not meet the repayment terms of their loan that was set forth by him. He was found guilty of 20 different offences by jury at the Warrington crown court. Nicholson was convicted for illegal money lending and money laundering after targeting around 800 victims. He is a former bouncer and fitness trainer that charged his victims interest rates that topped off at 125%. He even went as far as raping one of his debtors and telling others to do work as a topless waitress or even engage in prostitution in order to pay him back.

These are the types of people the teams are trying to shut down. Gareth Thomas, the consumer affairs minister for the United Kingdom, said, "Loan sharks fleece hard-earned cash from their victims, causing great distress and anguish. Calling this hotline gives victims the chance to talk in confidence. They get advice and support and the information provided helps the team to take action to stop illegal money lending." He went on to add, "The teams are having huge success in bringing these criminals to justice and are saving consumers significant amounts of money."
If you think you are a victim of a loan shark, you can call the confidential helpline at 0300 555 2222 or you can text ‘loan shark' and your message to 60003 on your mobile phone to report someone. You can also visit http://stoploansharks.direct.gov.uk/index.html for more information on learning how to manage your debt without using a loan shark.