Thinktank calls for urgent action to curb loan sharking following sentencing in today’s case

August 5, 2009

Commenting on the conviction and sentencing for five years imprisonment of John Kiely for loan shark activities at Manchester Crown Court today, the Director of thinktank New Local Government Network Chris Leslie said:

“This case is just the tip of the iceberg – and sadly we estimate that around 200,000 people in the most dire financial circumstances are today facing exploitation by similar loan sharks in deprived neighbourhoods across the country. Our research suggests that the recession and banking crisis has stripped away the availability of regulated small-scale credit, leaving hard-pressed families facing a vacuum and few options but the pawnbroker, payday lenders or loan sharks in the final instance.”

“Combating predatory lending can’t just be done by Ministers in Whitehall or the Bank of England – it requires targeted and access to regulated local credit at fair rates and for sub-prime borrowers. We urge local authorities to step up and help local credit unions displace loan sharks in the community, give new resources to trading standards teams to detect and prosecute often complex cases, and promote greater financial literacy and understanding of the pitfalls of borrowing from unregulated individuals.”

In May this year an NLGN report forecast that 200,000 people in the UK could be at risk from loan sharks due to the recession.


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