1,000% loan shark sentenced

A Birmingham loan shark who charged more than 1,000% interest on debts has been sentenced to 150 hours community service.

Alan McNally operated the unlicensed money lending operation in the Northfield area of Birmingham after poaching his employer's clients whilst working at a finance company.

McNally, from Yardley Wood, Birmingham, then left the company and approached clients, offering illegal loans with interest rates of over 1,000 APR.

He had around 75 clients whom he had lent money, using £20,000 raised from remortgaging his home. The typical loan amount was £100.

McNally paid personal visits to his victims' homes when they were unable to meet payments.

Investigators from the DTI-funded Loan Shark Team swooped on McNally's home after receiving tip-offs to the Loan Shark Hotline.

Commenting after the sentencing, Consumer Minister Ian McCartney said: "This should send out a clear message that there is no hiding place for loan sharks. We will take action against those people who think they are above the law. The government is determined to get illegal lenders off the streets and out of our communities.

"Loan sharks are the lowest of the low. They prey on the most vulnerable people in our communities and we are determined to stop them operating and making money out of misery."

The Birmingham Loan Shark Team, which covers the West Midlands, is one of two pilot projects established by the government in 2004. The other project is based in Glasgow and covers Scotland.

(KMcA)