To consider motions from councillors in accordance with Part B, paragraph 14 of the Constitution –

·         Loan Sharks.

Councillor Penberthy moved and Councillor Evans seconded the following motion -

‘Council:

·         Notes and welcomes the UK-wide campaign to end ‘legal loan sharking’.

·         Believes that the lack of access to affordable credit is socially and economically damaging.  Unaffordable credit is causing a myriad of unwanted effects such as poorer diets; colder homes; rent, council tax and utility arrears; depression (which impacts on job seeking behaviour) and poor health.

·         Further notes that unaffordable credit is extracting wealth from the most deprived communities.

·         Believes it is the responsibility of all levels of government to try to ensure affordable credit for all, and therefore pledges to use best practice to promote financial literacy and affordable lending.  This will help to ensure that wealth stays in the local economy.

·         Also pledges to promote credit unions, community based organisations offering access to affordable credit and promoting saving, in Plymouth.

·         Calls on the government to introduce caps on the total lending rates that can be charged for providing credit.

·         Calls on the government to give local authorities the power to veto licences for high street credit agencies where they could have negative economic or social impact on communities.’

An amendment was moved and seconded to allow Councillor Penberthy an extension of time to present the motion.

During the debate, issues raised included that –

·         pay day loans were a scourge on society with interest rates of 100 per cent or more plunging people into a downward spiral of debt;

·         the council was committed to and people were urged to use credit unions where loans would be made at a reasonable rate;

·         thanks were extended to the City of Plymouth Credit Union (01752 201329), the Plough and Share Credit Union (01837 658123), the Hope Credit Union (01752 301871) and the Citizen’s Advice Bureau for their work;  

·         work done nationally and especially the amendment from the House of Lords, were welcomed although pressure needed to be maintained to protect vulnerable people; 

·         there should be a licensing system to regulate loans and a veto on high street credit agencies;

·         with the government’s introduction of welfare reforms, the need for credit unions would rise;

·         regulation of private individuals collecting payments was also sought in association with the police;

·         schools needed to be more proactive although credit unions were now working with schools;

·         credit unions also needed investment;

·         information on credit unions would be put on the council’s website and work was being undertaken to provide leaflets and pamphlets.

Following a vote the motion was agreed.