A MAN was arrested in a raid following a major investigation by Enfield Council officials into illegal money lending.

The man, who cannot be named for legal reasons, is believed to have made illegal loans in the Ponders End area.

A number of documents were seized during the raid.

The investigation was part of a clampdown by Enfield trading standards division on loan sharks charging interest as high as 1,000 per cent. By law, money lenders must be licensed.

Trading standards is taking steps to stamp out what it describes as "the problem of loan sharking" in the borough.

The council is advising residents to avoid illegal money lenders and use other sources of finance such as local credit unions.

Ray Brewer, head of trading standards, said: "These lenders use high pressure techniques and harassment to get people to take loans out, and although the initial amounts lent may be small, perhaps £100 to £200, the rates of interest can be astronomical.

"Frequently they can be as high as 1,000 per cent which means victims can soon become trapped in a downward cycle of debt from which there is very little hope of escape."

Anyone with information about unlicensed money lending should call the special Loan Shark Hotline on 0181 379 8515. All calls will be treated in confidence.

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