A prolific loan shark who has been jailed for five years has been revealed through court sessions to have financed his company through threats lies and deceit, effectively taking advantage those most vulnerable during the recession.

The criminal amassed over a 1,000 clients over the course of his reign of terror and had to be paid debts totalling £800,000.

Victims had claimed that they lived in fear of his retribution for unpaid bills, one person even stating that they had to move homes in order to preserve their health.

One example was shown as a nurse borrowed £300 to pay for a wedding dress. Once she struggled to repay the debt after her hours at work were cut, she was met with a hostile and aggressive man who often threatened physical violence.

On one occasion a concrete block was thrown through her window. The loan shark was convicted of blackmail, illegal money lending, acquiring criminal property, concealing, disguising, converting or transferring criminal property, and unlawfully failing to give notice of a change in circumstances.

Judge Adrian Smith told him: "It's clear to me you are a ruthless individual who has displayed a high degree of criminal sophistication."

Those affected by the credit crunch are being urged to resist the lure of loan sharks and their quick and easy money as this will cause more problems than it will solve.

Knowsley Council have issued this warning to its residents as the next stage of the recession strikes with all its force. Those who are struggling may find it difficult to obtain a loan the usual way, through a bank or building society.

Cllr Ken Keith, Knowsley Council's Cabinet Member for Corporate and Customer Services, said: "It is understandable that many people may be feeling financial pressures at the moment as credit is not as widely available as it used to be, costs are rising and Christmas is approaching."

"We know there are loan sharks operating in Knowsley. Although it may seem like an easy solution to your problems loan sharks prey on people when they are at their most vulnerable and will certainly create a whole new set of problems for you to deal with," he added.

A recent report has shown that doorstep loan companies are now hitting the most deprived areas of the UK in an obvious attempt to take advantage of the current credit crisis.

UK doorstep lender Provident Financial Plc. said it expects "high-quality profits growth" in 2008 following a strong start to the year, continuing favourable market conditions and its strong funding position.

Doorstep loans are organisations which lend small cash sums at higher than average rates of interest to people with patchy credit records.

"If you borrow from doorstep lenders, you risk the roof over your heads in return for a day's happiness," said Jon Rouse, chief executive of the Housing Corporation.

Jason Strelitz, Save the Children's UK poverty advisor echoed these sentiments by stating: "Doorstep lenders exploit poor families' inability to get credit from more mainstream lenders, and they cover their risk in lending to the less well off by charging punitive interest rates."