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Last Updated: Thursday, 9 March 2006, 07:17 GMT
Pilot loan shark agency extended
Money lending - generic
Five loan shark cases are expected to come to court shortly
A pilot project set up to track down loan sharks operating in housing estates will be extended for a year.

The Scottish Illegal Money Lending Unit has secured funding to operate for a further 12 months beyond its two-year pilot period which ends in August.

Figures obtained by the BBC show the agency has investigated 70 cases. Eight cases, involving 16 people, have led to reports to the procurator fiscal.

To date no-one has appeared in court though five cases are pending.

Going to court can be frightening and witnesses fear retribution
Loan shark investigator

Two units were set up in Glasgow and Birmingham by the Department of Trade and Industry (DTI) in September 2004.

The pilots aim to track down loan sharks and protect society's most vulnerable people.

A member of the Glasgow unit, who asked not to be identified, said it was making progress.

She said: "We feel it is going very well considering the lack of information and profile when we started.

"The fact we have reported eight cases shows the dedication of the unit.

"We'll be happier when we get cases to court and a successful prosecution.

"I'm hoping the penalties will reflect the conduct of individuals."

Victims 'reluctant'

Of the eight cases reported to the procurator fiscal to date, one was dropped while another resulted in a warning letter.

A further five are expected to come to court in the coming months.

The member of the Glasgow unit said it was difficult to encourage people to come forward.

She said: "Victims are very reluctant to come forward, they are scared.

"Going to court can be frightening and witnesses fear retribution.

"We hope cases and penalties will help that side of things."

Loan sharks face up to two years' imprisonment and a fine of �5,000 if caught.

The DTI has provided �459,290 to allow the unit to continue its work in Scotland.

A decision is still to be made on the long-term future of the project.


SEE ALSO:
Sorting out borrowing problems
22 Nov 05 |  Business
Voices from the poverty frontline
02 Aug 05 |  Business
Teams on the scent of loan sharks
14 Sep 04 |  Scotland
Crackdown on illegal loan sharks
06 Sep 04 |  Business


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