POLICE and loan shark investigators arrested a man after a dawn raid in Southampton.

A dozen officers raided a house in Millbrook and searched it for almost three hours yesterday morning in the first operation of its kind in the city.

Bank statements and documents were seized, as well as an axe and knife discovered in a silver Vauxhall Corsa.

The man was later released without charge.

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The Daily Echo joined investigators on the 6am raid, the first of its type to be carried out in the city since the team, made up of trading standards officers, was established in Birmingham.

It was part of a nationwide crackdown on loan sharks preying on people struggling with debt in the recession.

It is not known how many loan sharks are operating in Hampshire, but numbers are expected to rise as more people are denied credit by traditional high street lenders.

A member of the team – whose identities are kept confidential – said loan sharks often charged extortionate interest rates that meant their victims could never repay the debt.

She said: “Loan sharks come in all forms and all sorts of ages. They may appear very friendly at first and say they want to help you with a small amount of money, but the amount of money you pay back will be exorbitant.

“It escalates very quickly and when you can’t pay they then often turn to violence and you become trapped in a spiral of debt.”

Last month, money seized from a loan shark operating in Gosport was used to help people in financial difficulties start their own savings accounts.

A new website and national hotline – which is confidential – were also launched this week to help victims escape their spiral of debt.

The loan shark team has successfully prosecuted more than 60 people, with a further 90 prosecutions under way. This amounts to nearly 40 years of sentences for illegal lending and crimes including sexual assaults and violent attacks.

Since 2004, more than 7,000 victims have been helped, with about £14m in debt written off.

Consumer affairs minister Gareth Thomas said: “Loan sharks fleece hard-earned cash from their victims causing great distress and anguish.

“Calling this hotline gives victims the chance to talk in confidence.

They get advice and support and the information provided helps the team to take action to stop illegal money lending.”

■ If you have any information on a loan shark call the confidential national hotline on 0300 555 2222 or go to direct.gov.uk/stoploansharks for more information.