The government has set out plans to tackle loan sharks who charge exorbitant rates of interest through complex and costly finance schemes.

In a white paper released yesterday, the trade secretary said Britain's 30-year-old credit laws required a radical reappraisal. Patricia Hewitt said the government wanted to get tough with "predatory lenders" whilst ensuring consumers make informed choices about the credit they take.

Ministers also plan to get tough with credit card firms - who currently lend nearly £50 billion on plastic.