Stockport Labour Group’s campaign to secure support for action against exploitative Pay Day Lenders was backed by the Full Council Meeting on Thursday 12 September 2013.
- Pay Day Lenders’ websites to be banned from Council computers in places like libraries,
- Pay Day Lenders’ advertising to banned from bus stops, Metrolink stations and other sites operated by TfGM,
- Support for Stockport Credit Union and better financial education and support to be made available for residents.
The Lib Dem councillors felt the need to amend Labour’s motion to say largely the same things but to delay banning access to Pay Day Lenders’ websites until a report into the consequences could be produced. After reassurances were sought by Labour councillors that action would be taken if the Lib Dem amendment was accepted, the amended motion passed unanimously.
Cllr Laura Booth (Labour councillor for Offerton ward) said:
“Pay Day Lenders use clever advertising tactics to make people think they are safe and easy ways to access money quickly. However, we know that many people have got into deep financial trouble from taking out small loans because of the huge interest rates that the lenders charge. Our motion sought to take clear and decisive action against Pay Day Lenders.
“The Lib Dems wanted to go a bit slower and because they have more councillors than we do, we reluctantly accepted their amendment. This is just the first step in our campaign and we will continue to press the Council and others for action. We have an ethical and moral duty to tackle Pay Day Lenders.”
Cllr Kate Butler (Labour councillor for Reddish North ward) commented:
“A really important part of the original Labour motion was to secure extra support for Stockport Credit Union. I am pleased that we managed to get agreement on this and agreement for an all-party financial inclusion working group to be set-up to look into access to financial advice, education and support. The key to tackling Pay Day Lenders is to give people the knowledge and support they need so they don’t fall into the clutches of these unscrupulous companies.”
The Labour Group is encouraging savers to join the Stockport Credit Union and for people in need of financial support to also join the credit union. You can find out more information by visiting their website here – www.stockportcu.com.
Kate adds, “Work needs to be done to get the message across that Stockport Credit Union needs savers as well as borrowers and is the first port of call for ethical saving and as well as responsible lending”.
The Labour Party has committed that a future Labour Government will cap the cost of credit and introduce changes to planning law which would give councils new powers so that they could put Pay Day Lenders into a new category and ensure that they always have to apply for change of use permission before taking over any premises.