27 September 2005
The government will crack down on loan sharks in an effort to defend consumers and ensure the respectability of the industry, it emerged yesterday.
Ministers Alan Johnson and David Blunkett told the Labour party conference that they were declaring war on loans sharks, and that they have already earmarked funds for the purpose.
A total of £81 million will be spent fighting the sharks and helping the poor.
Mr Blunkett told the Mirror: "We want to help people who have no savings and no proper income to get access to credit to stop them being financially excluded.
"It might mean they can get a cooker or a bed and it will be a proper loan rather than relying on rip-off merchants who leave them in an even bigger mess."
Mr Blunkett, the work and pensions secretary, will spend £36 million on credit unions, community development finance initiatives and other affordable credit schemes.
Trade and industry secretary Alan Johnson will pay £45 million for face-to-face counselling for the poor, in order to help them understand their situation and avoid the sharks.
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