A loan shark has been jailed after lending £120,000 to victims charging them with 60 per cent interest.

Following an investigation by the London Illegal Money Lending Team (LMLT), and Wandsworth Council, it was discovered that the man from Tooting lent a £120,000 loan to 67 people across south London in 2008.

Late last week he was sentenced at Kingston Crown Court for illegal money lending and money laundering.

The court heard that the man had set up his own company yet did not have a consumer credit licence.

Peter Richardson, project manager of the LIML team said: "In addition to the 60 per cent interest he also handed out a monthly penalty charge for late payments of up to £85 spiralling his victims into further debt."

He was sentenced to eight months for illegal lending along with two other separate eight-month sentences for running two counts of money laundering.

Spokesperson of Wandsworth Council's consumer protection, Councillor Sarah McDermott, said: "Loan sharking is a despicable crime that exploits some of society's most vulnerable and desperate people.

In these difficult economic times people often need a little extra cash to tide them over, but these very modest loans are soon transformed into crippling debts by unscrupulous lenders like [the man]."