Agenda item
Credit unions
Minutes:
Councillor Butt moved the motion circulated in his name. He referred to the last 2 years during which what he regarded as the biggest decline in living standards had taken place; millions of households had been pushed deeper into poverty which had been made worse by cuts to welfare benefits. He stated that increased poverty led to increased debt. Credit Unions were a viable and ethical alternative to the loan shark companies and he felt there was much more that could be done to promote the use of them. Representatives of the Credit Union for Brent and Ealing (CUBE) were present at the meeting. Councillor Lorber expressed support for Credit Unions and referred to what he thought was the related issue of the proliferation of betting shops, which had made it easier for people to gamble. Councillor Lorber asked how CUBE had been selected out of all the credit unions operating and whether a proper selection process had been undertaken. He felt it was important that the Council did what it could to ensure people received proper advice about debt. Councillor Kansagra supported the motion and felt that the Council needed to do what it could to provide assistance and advice to those people who found it difficult to manage their finances.
Following a vote the motion was declared unanimously CARRIED.
RESOLVED:
(i) that Council notes with alarm the unfettered growth of Pay Day Lenders in the borough and recognises the role that they play in increasing poverty and debt across Brent;
(ii) that Council welcomes the progress being made by the “Movement for Change” to highlight the dangers posed to the community by Pay Day Lenders and in promoting credit unions as an alternative;
(iii) that lenders charging interest at rates of 4,000% have no place in a modern society;
(iv) that Council regrets that excessive interest rates as charged by Pay Day lenders are hampering the UK’s economic recovery and causing misery to the already financially excluded;
(v) that Council notes the Government’s determination to increase the number of members of credit unions, recognises that in order to provide the best service for those that are financially excluded an equal number of members need to be paying into their credit union accounts by payroll deduction;
(vi) that the well-established and productive partnership between CUBE, the credit union for Brent and Ealing and Brent Housing Partnership be continued;
(vii) that Brent Council becomes a Corporate Member of the credit union subject to there being no legal constraints;
(viii) that CUBE be promoted to tenants and residents across the borough;
(ix) that improved access to CUBE for Brent Council staff be provided;
(x) that the Council’s partners and other employers in Brent be encouraged to allow payroll deduction so that their staff can more easily develop a savings culture;
(xi) that representations be made to Brent MPs to support a rate cap on Pay Day lenders when next the opportunity arrives in Parliament;
(xii) that schools in Brent be encouraged to use materials provided by the Personal Finance Education Group to improve the financial capability of the borough’s school children;
(xiii) that Councillor Pavey be appointed to champion Credit Unions across the Borough.