Question

To ask the Secretary of State for Business, Innovation and Skills, what steps he is taking to assess changes in the number of people using illegal lending sources as a result of new regulations and the annual levy on payday loan companies.

The Department does not hold information relating to changes in the number of people using illegal lending sources as a result of new regulations and the annual levy on payday loan companies. However, the Financial Conduct Authority (FCA) works closely with the national Trading Standards Illegal Money Lending Teams (IMLTs) across the UK to monitor trends and police the market, and both have the powers to take action where necessary, including the ability to prosecute those who are found guilty to be lending illegally.

I am well aware of the misery inflicted on often vulnerable consumers by loan sharks. That is why this financial year (2014/15) the Department has provided £15 million in funding to the National Trading Standards Board (NTSB) and Trading Standards Scotland (TSS). The NTSB the TSS utilise specialist expertise to tackle the worst rogue traders, including the illegal money lenders. In addition to apprehending loan sharks, the NTSB and TSS engage in valuable educational work, equipping vulnerable groups of consumers to avoid the clutches of illegal money lenders.

Both NTSB and TSS regularly report emerging developments to the Department, along with their successes. Since April 2012 £1.5 million in cash has been seized from illegal money lenders, and 47 individuals have received custodial sentences.