Agenda item

Motions on Notice - Payday Lenders

Meeting of Council, Wednesday 11th December, 2013 7.00 pm (Item 443.)

To receive Motions on Notice:

(A) Payday lenders

(B) Protection of public houses

Minutes:

Councillor N Symonds proposed and Councillor M Wood seconded, a motion as follows:

That East Herts Council:

(A) notes that payday lenders are trapping millions of people, many of whom are vulnerable, in spirals of debt;

(B) believes that the Financial Conduct Authority (FCA)’s new proposals for regulating payday lenders are a step in the right direction, but considers that they do not go far enough;

(1) prevent payday lenders from drip-feeding new loans to people who already have payday debts and are struggling to pay them back;

(2) prevent people from being hit with escalating penalty fees, and

(3) stop payday lenders from raiding people’s bank accounts without telling them;

(D) welcomes that some of Britain’s biggest debt, consumer and anti-poverty organisations – including Which?, Citizens Advice, StepChange Debt Charity, Church Action on Poverty and the Centre for Responsible Credit – and MPs from every Party represented at Westminster have come together to support the Charter to Stop the Payday Loan Rip-Off;

(E) endorses the Charter to Stop the Payday Loan Rip-Off which calls on the FCA to introduce tougher regulation of payday lenders;

(F) encourages residents of East Hertfordshire to support the Charter by signing the online petition at http://www.change.org/paydayloancharter

(G) will seek to promote and support the development of local credit unions and more affordable lending;

(H) will work with partners on campaigns against increasing levels of personal debt, and

(I) will advise Martin Wheatley, Chief Executive of the Financial Conduct Authority and all local Members of Parliament of the decisions at (A) to (H) above.

Councillor N Symonds expressed concern at the impact of payday lenders on vulnerable people, the ease at which cash could be obtained in such a short time and the growing use of advertisements during children’s television.

Councillor M Wood quoted a number of statistics which demonstrated the growth of the use of payday lenders and called on the Government to do more to curb their activities. He also believed that the Council’s website could be more helpful in providing information on credit unions. The Leader undertook to take up this issue with Officers.

Various Members spoke in support of the motion. The Leader undertook to convey these concerns at his regular meeting with the local MPs.

Councillor J Wing expressed concern in respect of the impact of payday lenders on high streets and suggested an additional clause be added to the motion to the effect that a special planning category should be created in order to control changes of use. This was later withdrawn.

After being put to the meeting, and a vote taken, the motion was declared CARRIED.

Council approved the motion as now detailed.

RESOLVED – that East Herts Council (A) notes that payday lenders are trapping millions of people, many of whom are vulnerable, in spirals of debt;