Calls for action on loan sharks

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Sheffield Council’s Labour members are campaigning for a clampdown on legal loan sharks.

The ruling group is to pass a motion at today’s full council meeting calling for a cap on rates.

High street banks are restricting who they lend to, which is forcing low income families into borrowing from payday lenders and other legal loan sharks - some of which charge rates of over 2,500 per cent.

Coun Mazher Iqbal, cabinet member for communities, said: “We are very concerned for the financial wellbeing of residents in Sheffield. We support the national campaign to cap the amount these companies can charge for loans.

“Irresponsible lending is part of the reason the country is in a mess. If these companies are not properly regulated to stop them preying on struggling families the situation is going to get worse.”