http://news.bbc.co.uk/1/hi/england/8513328.stm


Then why has no government for twenty years despite repeated requests never drafted legislation against such activities? (possibly because the proper banks would be caught up)

I can't help thinking that if a loan shark is your only option you should probably consider yourself 'ahead', and quit there and then

The amounts borrowed are tiny. Most start at less than £1000. What is needed is a ban on unlicensed lenders, with a cap on interest rates. The Child Poverty Action Group have been lobbying for this for years but the banks have lobbied against this because it would also cap bank loan and credit card interest rates. If someone on benefits needs money they can borrow it from the social fund and repay it without interest, though many are simply refused. If people need loans this small the government could support credit unions to make such small loans and allow direct payment from benefits. They should also do what can to help working poor to get access to funds again via credit unions.