BIRMINGHAM will act as a national battle hub as campaign bodies working against loan sharks and scams receive a Government funding boost.
Specialist regional Illegal Money Lending (IML) and Scambuster teams run by Trading Standards will continue to be funded by the Department for Business.
The IML and Scambuster projects will be funded next year at approximately the same level as this year – receiving £5.2m and £3.2m respectively – with funding expected to stay at similar levels in 2012/2013.
The Department for Business, Innovation and Skills is also to restructure the IML project by moving away from regional teams to a structure that will see one team in England alongside national teams in Scotland and Wales.
Action in England will be co-ordinated by a Birmingham-based team that already covers five regions.
To date, the IML teams have identified more than 1,700 illegal lenders, arresting more than 500 loan sharks and writing off more than £37m of illegal debts.
Scambuster teams have uncovered an estimated £55m worth of fraud, made an estimated £23m of savings for consumers and seized £16.5m worth of criminal assets.
Consumer minister Edward Davey said: “These are good projects. They are taking the fight to loan sharks and scammers in communities up and down the country.
“It is extremely pleasing that, despite the huge budget deficit, we have been able to find the funding to continue this important work.
“People who prey on the vulnerable will not be tolerated and these teams will help lead the fight against these crooks.
“I believe our new structure….will bring efficiency savings and even better results.”
The Department for Work and Pensions has also announced that Jobcentre Plus has joined forces with Trading Standards to help customers who are being targeted by loan sharks.
Frontline staff at Jobcentre Plus are now being trained in how to spot signs of illegal money lending activity.
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