91�ȱ�

More than 4,000 people in Wales have been victims of loan sharks in the past 10 years, financial investigators have warned.

Wales Illegal Money Lending Unit (Wimlu) said the loans of more than £5m were just the "tip of the iceberg".

It has identified about 300 loan sharks and brought dozens of them to court since it launched in 2008.

The Department for Work and Pensions (DWP) said support with budgeting was available for those who need it.

Wimlu has revealed figures showing it has retrieved £850,000 under proceeds of crime laws and helped victims receive more than £120,000 in compensation.

An investigator on the team has said that persuading victims to come forward is still a challenge.

The woman, who does not want to be identified, told 91�ȱ� Radio Wales' Eye on Wales programme: "Every time we'd speak to a victim they'd say 'I'm not speaking to you - he will just go to prison for a few months and then he's out and he's back here again.

"They would use the word 'grass' - 'I'm not going to grass him up'."

She cited an example of a mother in Swansea who wanted to give up her three young children to social services because her benefits income was being taken by a loan shark.

However the investigator, who is part of a 10-strong team, hopes a string of successful prosecutions will encourage victims to speak out.

In a recent case, more than £20,000 was found hidden in a tin of peas and ice cream boxes in a freezer in Caerphilly.

Cardiff Crown Court heard Robert Sparey targeted vulnerable people for more than 20 years - while he was claiming benefits.

The investigator said: "We took his caravan. We took his Rolex watches, we took his car. The council took his house because he went to prison.

"On that estate, they've seen that he lost everything.

"And the people who gave the witness statements, we got them compensation."

But the success of the Cardiff-based unit comes as community workers fear the move to Universal Credit could be seen by loan sharks as an opportunity.

Kath Hopkins, a money advice worker at social housing provider Pobl Group, said the main worry for people was the five-week delay from the initial claim for Universal Credit to their first payment.

"We have spoken to people who have said they had borrowed from loan sharks," she added.

"Somebody who has borrowed a few hundred pounds has paid back a few thousand pounds."

She said others gave loan sharks their benefits as soon as they received them because they "wanted to keep their legs".

A DWP spokesman said: "The majority of claimants are comfortable managing their money and there is support to help people who need it to stay on top of their payments with advance payments and budgeting support.

"People in receipt of Housing Benefit receive two weeks' rent when they move onto Universal Credit and landlords can now apply to have rent paid directly to them if their tenants are more than two months in arrears."

Eye on Wales, 91�ȱ� Radio Wales, 18:30 BST Wednesday, 13 June.