A NORTH-East MEP has helped to curb the spread of loan sharks on council estates across the region.

Stephen Hughes was among MEPs who stopped European red tape strangling credit unions, which provide affordable credit to people who would otherwise not have access to legitimate loans.

Credit unions are owned and managed in the community, but they were under threat from European legislation proposed for major banks and credit companies.

Mr Hughes said: "To include credit unions in the kind of regulation proposed for major banks would be to legislate them out of business and let spivs and loan sharks roam free on our council estates."

Almost 500,000 people in Britain benefit from the affordable credit offered by credit unions.

Mr Hughes is a member of the South Darlington Credit Union, which serves the people of Skerne Park in the town.