A MAJOR crackdown on loan sharks is to be launched in Lancashire in the coming weeks.

Trading standards bosses say desperate, hard-up people are being held to ransom by illegal money-lenders and often assaulted if they cannot keep up repayments.

It is thought the problem is far more widespread than is reported, and victims could be offered safe houses and witness protection measures.

Officers from Birmingham, where the scheme was piloted, will work with Lancashire councils in the government-funded drive.

Julian Edwards, a lead trading standards officer for Lancashire County Council, said the project, which will include a helpline and financial advice for loan shark victims, should be rolled out across Lancashire by mid-July.

He said: "We have always had a responsibility to deal with illegal money-lending, but there is an awareness that we are not perhaps as effective at dealing with it as we could be.

"There may not have been many reports across Lancashire, but we know that doesn't reflect reality. People are often scared to report incidents.

"It can be devastating. These aren't high street lenders but people everyone knows in estates who will lend people £100 and charge them £1,000.

"At the most serious end of the scale people are physically assaulted by these sorts of people."

Blackburn with Darwen council, which has its own trading standards officers, will rubber-stamp the partnership with Birmingham City Council on Thursday night.

The ruling executive board will be asked to agree to give the officers the right to act on behalf of people in the borough.

Executive member for citizens and consumer rights, said illegal money lending was a particular problem in deprived areas.

Blackburn with Darwen is currently ranked the 17th most deprived borough in the country by the government.

Coun Slater added: "The aim of this operation is to encourage people to pass on intelligence about loan sharks and illegal lenders so the team can take action against them."