LOAN sharks who prey on vulnerable people are to be targeted by undercover officers.

Trade and Industry Secretary Patricia Hewitt announced the move as part of the biggest shake up in consumer credit for 30 years.

The "loan shark hunters" will work to tackle gangs of criminals who lend people more than they can afford to pay back and then extort payment with the threat of violence.

The move is one of the measures in the Consumer Credit White paper, which tightens up credit licences and will put debt management companies and rogue moneylenders under closer scrutiny and gives the Office of Fair Trading the power to fine lenders and carry out surprise raids.