LOAN sharks - who trap borrowers into spiralling debt and use threats to enforce payment - are being targeted in a crackdown in Middlesbrough.

People who borrow from them and are unable to pay can be forced into prostitution or crime by threats from some loan sharks - driving crime up.

The England Illegal Money Lending team has teamed up with Cleveland Police and trading standards in Middlesbrough to make people more aware of the dangers of rogue lenders.

The money lenders operate illegally, without permission from the Financial Conduct Authority, and interest rates have been known to be up to 131,000 per cent APR.

Loan shark criminals may appear friendly at first - but quickly trap their borrowers into spiralling debt.

The IML team said the money lenders would "resort to the most extreme and callous methods to enforce repayment, including threats, violence and intimidation".

Victims were left in the dark as to how much they are actually paying, as paperwork is rarely offered, and interest is added at random.

In some cases the loan sharks have been known to take items as security including passports, driving licences and even bank or post office cards with the PIN in order to withdraw directly from borrowers' accounts.

Yesterday several people and agencies, including Middlesbrough Mayor Dave Budd and Cleveland Police and Crime Commissioner Barry Coppinger, signed a charter pledging that loan sharks would not be tolerated in the town and offering support to the IML team to identify and remove them.

An estimated 310,000 households across the country are in debt to a loan shark.

More than 320 rogue lenders have been prosecuted across the country, many of whom extorted cash from communities, leaving victims with little or nothing to get by on and often living in fear.

Tony Quigley, Head of the England IML team, said: “Illegal money lenders are a scourge on our communities, making life a misery for their victims."

Middlesbrough Mayor Dave Budd said: “The Stop Loan Sharks Charter sends out a clear message that these illegal lenders will not be tolerated in Middlesbrough and that we will do all we can to drive them out of our communities.

“Their unscrupulous and immoral practices cause misery to their victims, so it is vital that we make people aware of the more affordable - and legal - alternatives that are available.

"I look forward to working alongside the Illegal Money Lending Team to stop people falling prey to these parasites.”

Victims of illegal money lenders are urged to seek help by contacting 0300 555 2222.

To report a loan shark, email reportaloanshark@stoploansharks.gov.uk or private message www.facebook.com/stoploansharksproject