Agenda item

To receive a report updating the Joint Advisory Board on work that has been carried out by the Illegal Money Lending Team (ILMT) within the boroughs of Brent and Harrow and advice on future plans.

Samuel Abdullahi, (Harrow Trading Standards Team Leader, Brent Council) presented a report on the work being carried out by Brent and Harrow Trading Standards in partnership with the National Illegal Money Lending Team (ILMT) and advising on future plans.

In considering the report the Joint Board noted:

•         The function of the Illegal Money Lending Team (ILMT) in relation to enforcement against illegal money lenders and in seeking to police the unregulated market and protect and support victims of illegal money lenders working with all local authorities in England.

•         In view of additional pressures arising from the cost-of-living crisis the work being undertaken through the ILMT was increasingly being targeted around combatting the associated growth in illegal lending by focusing on prevention, awareness and enforcement activities.  Examples of the work being undertaken across Brent and Harrow were detailed in section 3 of the report with the Board advised that the Service was committed to continue working with IMLT to ensure that victims that had engaged with loan sharks were able to get support and loan sharks were reported, investigated and prosecuted.

•         In addition, the Board was advised of work planned to provide training and workshops to staff across Brent and Harrow to enable them to identify victims and direct them to appropriate support.

The following issues were then raised by Members of the Board in response to the update provided:

•         Whilst commending officers for the work undertaken to date, Members were keen to ensure that the support available to individuals or households experiencing difficulties as a result of the growth in illegal lending was fully signposted.  This included support available through organisations such as Citizens Advice, Credit and Renters Unions as well as the ILMT.  In response the Board was advised of the work being undertaken with the ILMT and Financial Inclusion Officer to ensure awareness was raised and support was appropriately signposted, which had included loan shark awareness workshops and events held across Brent and Harrow.

•         Referring to the growth in problems being experienced by victims of illegal money lenders the Board was keen to support the work being undertaken with ILMT to train a wider range of staff across both Councils in being able to identify victims and direct them towards accessing appropriate support.

•         Concerns relating to the use of Individual Voluntary Agreements (IVA) as a means of restructuring debts were also highlighted by the Board, given the increase in advertising of these type of arrangements especially targeted at victims or households who were already financially vulnerable.  In response the Board was advised that the ability to take action in respect of companies offering these types of arrangements would depend on whether or not the products being offered were regulated and companies registered with the Financial Conduct Authority (FCA).  The main focus of the work being undertaken through the ILMT remained on unlicensed money lenders with concerns relating to potentially unethical practices of licensed providers needing to be raised with the FCA as the relevant licensing and regulatory body.  Members were advised this support could also be signposted on the relevant websites.

•         In welcoming the action being taken to identify and support victims of illegal money lenders and the work being undertaken to improve awareness and the signposting of support, the Board was also keen to explore the preventative activity being undertaken to enhance the range of financial and budgeting education available to promote a better understating of financial and debt management in an attempt to prevent individuals and households getting into financial difficulties and also to support individuals incoming forward to report issues.  In response, the difficulties involved in encouraging individuals to come forward as victims were recognised, with work ongoing to provide the necessary support outlined along with the materials and support available through the IMLT to assist in raising awareness and promoting a better understanding of budgetary and debt management.

In welcoming the update and supporting the positive work being undertaken to address illegal money lending the Joint Board thanked officers for the report and RESOLVED to endorse and note the update on the activity in relation to tackling illegal money lending.