BOLTON Council will call on the Government for more powers to prevent “legal loan sharks” setting up shop in the borough.

It comes after it was revealed some people are paying more then 4,000 per cent interest in loans.

Breightmet councillor Kate Challender tabled a motion at a Bolton full council meeting after she said a couple from her ward had faced a bill of almost £5,000 for goods worth just £450.

She told the meeting: “A pilot debt and welfare service at Breightmet UCAN centre found of the 51 local people who accessed the service, the average level of personal debt was about £10,000, but varied from £600 to £62,000.

“A typical case was a couple who had bought goods worth £450 from Brighthouse and were making weekly payments of £32 over three years.

“They’d already made about 52 payments totalling £1,664 and their total repayments would have been £4,992 — which is £4,542 more than the goods were actually worth.

“In this case the couple returned the goods to Brighthouse and purchased similar products through Hoot, Bolton’s credit union.

“Their repayments with Hoot over one year worked out at just £8 per week, meaning they were saving £24 per week and £4,576 in interest.”

The meeting heard the high cost of lending was leading to people suffering with poor diets, colder homes and falling behind on rent, bills and council tax payments.

Cllr David Evans, who represents Little Lever and Darcy Lever, said: “There is concern this could result in poor health, which impacts on job-seeking behaviour.”

Heaton and Lostock councillor Bob Allen added: “This touches a nerve with me.

“They’re very focused on the poorest part of the community, they target these people because they can’t borrow elsewhere.”

He also praised the Hoot credit union — a financial not-for-profit co-operative in Ashburner Street which is owned and controlled by its members.

Cllr Allen said: “The biggest of these companies charges £34 to borrow £200 for a month, Hoot charges £26 a year.

“It has 3,549 members who together have saved £650,000.

“It’s a real success story.”

To contact Hoot call 01204 365 024.

Members voted unanimously to call on the Government to give the council the ability to block High Street credit agencies from opening in parts of Bolton where they could have a “negative economic or social impact”.