Credit companies face levy to fund loan sharks crackdown

Consumer credit firms are to face a new levy to finance a crackdown on illegal loan sharks, Chancellor George Osborne has announced.

The Bank of England and Financial Services Bill is to be amended to enable the Financial Conduct Authority to impose the levy.

The revenue raised will be used to fund illegal money lending enforcement teams across the UK from 2017/18.

"I am absolutely determined to protect customers from abuse and sharp practice in the consumer credit market," Mr Osborne said.

"It's why we're taking further action today to tackle illegal loan sharks by ensuring that enforcement teams have the funding, from the industry, they need to protect consumers from those that would do them harm."