LOAN sharks who prey on the weak are set to be hunted down in Newport.

Wales' illegal money lending unit was given the go-ahead to carry out investigations in the city.

Public protection manager Helen Wilkie told the cabinet said it was an excellent opportunity.

The council's own officers did not have the expertise or resources to "flush out" the sharks they suspected were operating on some council estates.

"Particulary with the credit crunch, some people don't have access to High Street lenders and will resort to these characters," she said.

Interest rates could be as high as more than 100,000 per cent APR.

"The evidence so far indicates that illegal moneylenders are widespread and prevalent," said a report to cabinet.

"They operate in areas that have a high proportion of rented accomodation and target the most vulnerable memers of society."

Council leader Bob Bright condemned "these scurrilous people preying on the weak".

The Cardiff-based unit will include access to a debt adviser for victims as they still needed help after the illegal money lenders are gone.

Ms Wilkie said fortunately Newport had a Credit Union, an organisation which offers low cost savings and loan schemes.

Two pilot illegal money lending units operate in Birmingham and Glasgow. They have helped more than 1,500 victims and more then £2 million in illegal debt was written off.

Prison sentences totalling more than 26 years have been given to those involved and proceeds of crime cases for more than £1 million are ongoing.

The cabinet also backed a proposal for experienced trading standards officers from other authorities to help in Newport in certain circumstances.

A Wales Scambusters team is being set up to deal with rogue traders operating across different areas later this year.