Hard-up householders were today urged not to turn to loan sharks for cash in the post- Christmas crunch.

Illegal money-lenders are now being hunted by specialist teams working for Bradford Council and West Yorkshire Trading Standards.

Since the national Illegal Money Lending Team was formed it has exposed unscrupulous lenders charging interest rates of 117,000 per cent.

So far the team has identified 35 illegal money lenders in Yorkshire and the Humber and has prosecuted five. Legal proceedings are on-going in a further five cases.

As legitimate lenders such as banks and finance companies continue to tighten their borrowing, people in the Bradford district who fall victim to loan sharks have been urged to contact the Illegal Money Lending Team on its national helpline.

Councillor Martin Smith, Bradford Council’s executive member for safer communities, said: “The message to people out there is don’t turn to illegal money lenders, they can make people’s lives a misery.

“Residents need to get out of the debt trap that these people cause and the national helpline will rid the streets of these loan sharks.”

Graham Hebblethwaite, chief officer for WYTS, said since a specialist team was started in Bradford last year two major inquiries had been held.

A spokesman for the team warned that loan sharks might initially appear to be friendly but deliberately preyed on people with money problems.

A common example was that they might provide a £200 advance payable at a rate of £20 a week – but over such a long repayment period that the final total was four times the original loan.

David Lodge, divisional manager for West Yorkshire Trading Standards, said loan sharks targeted those least able to pay them back and often led victims into areas of crime including prostitution.

He said: “The more sinister side is that very often the intention of illegal money lending is to get people into a situation where they can’t really afford to pay the loan back.

“They can end up being threatened with violence and there’s been instances where girls have been forced into prostitution or other areas of illegality.”

Advisers at the National Debtline said due to fear and intimidation many people found it difficult to speak out and ask for help.

A spokesman said: “We would like to remind people of other options available such as social fund loans, credit unions and budgeting.”

To report illegal money lenders contact the national confidential hotline number on 0300 555 2222.

To contact Consumer Direct call 08454 040506.

e-mail: james.rush@telegraphandargus.co.uk