A BATTLE to drive loan sharks out of Bolton has been launched.

Leaflets are being sent to 18,000 council tenants in the borough warning of the dangers of high interest lenders.

Patricia Quinn, of Bolton's borough-wide credit union, Quids In, said householders were losing thousands of pounds to loan sharks every year - many of them in some of the borough's most deprived estates.

She added: "Tenants often see them as friends of the family who they can turn to in times of trouble because, perhaps, their mother or aunt have taken out loans with them in the past.

"Sadly, all too often they just look at the affordability of their repayments rather than the overall cost and some people end up in a vicious cycle of debt."

The leaflet, called "The Big Rip Off", will be distributed to tenants with their quarterly rent statements and will encourage people to go to the credit union to borrow money rather than loan sharks.

Around 800 people have now joined the organisation, set up at the beginning of the year, by opening savings accounts or taking out loans of up to £5,000.

The group offers a standard interest of 12.68 per cent compared to some doorstep lenders who advertise rates of over 170 per cent.

The credit union has been set up as a not-for-profit community financial organisation which aims to give everyone in Bolton access to affordable credit and encourage them to save.

Councillor Noel Spencer, chairman of Bolton at Home, which manages the council's housing stock, said that some tenants would pay debt collectors calling at their door rather than paying their rent.

He added: "People borrowing more than they are saving seems to be a growing problem.

"Dealing with loan sharks is never a good idea and Quids In gives people a chance to get a really good deal."

Call 01204 365024 or visit: www.quidsin-creditunion.co.uk for more information.