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£1 million plan
to beat loan sharks
LIVERPOOL is to invest up
to £1 million in credit unions to offer low cost loans to families
in financial crisis. The aim is to prevent people taking out
unaffordable credit at extortionate interest rates, running the risk
of falling prey to illegal loan sharks. It is known that some
companies offer loans with rates of up to 16,000%; driving people
even further into poverty.
A report to the Cabinet is recommending the city council invest in
supporting the credit union movement so they can reach more people
and provide the financial advice, guidance and products to avoid the
trap of high cost or illegal loans.
Council Leader Joe Anderson said:- "I have been desperately
worried about the plight of quite a lot of hard-up families in
Liverpool for some time. They are being forced to go to high street
money-lenders and pay-day loan companies and in most cases pay huge
levels of interest on their loans - simply because they are unable
to get credit through ordinary banks or building societies.
Some of them get even deeper into debt and turn to illegal loan
sharks. These despicable lenders are the lowest of the low; preying
on the most vulnerable, making their lives an absolute hell because
the interest rates are so extortionate.
It makes good sense to invest in our credit unions. They will be
able to help hundreds more families with affordable loans at a fair
level of interest. It will make such a difference for families
trapped in a nightmare of rip-off charges and runaway debt.
Credit unions in the city do a fantastic job, but up to now they
have been small organisations serving small communities. We want to
work with them and support them with our own resources to reach many
more people. If we can prevent people being ripped off by
sky-high rates or ruthless criminals who use threats and
intimidation to force money out of the people who can least afford
it, then this is the right thing to do."
It is also proposed that the city council will work with other
public sector agencies and the private sector to lever in additional
funding to help tackle the issue.
Deputy Council Leader and Cabinet member for Finance, Councillor
Paul Brant, said:- "These are really tough times for people
who are being hit by a triple whammy of rising unemployment,
increased costs for food and fuel and cuts in welfare benefits.
The banks have also toughened up their lending criteria which means
many people are unable to get affordable credit any more. All
of this means that the temptation to go to a loan shark is higher
than ever, and people resort to them out of desperation."
The council recently agreed its Trading Standards department should
continue working with the regional Illegal Money Lending Team led by
Birmingham City Council to crack down on loan sharks.
The scheme has been operating since 2007, and has found that:-
► Illegal moneylenders are widespread and operate in areas that have
a high proportion of rented accommodation and target the most
vulnerable members of society.
► Moneylenders vary from those who lend £10 over a few days and
demand £12 on repayment to those who provide substantial loans to
those looking to set up businesses.
► The majority of people using moneylenders are in receipt of income
support or benefits and are introduced through word of mouth.
► Moneylenders resort to intimidation and violence in order to
secure payment. Other common traits include adding indiscriminate
charges, targeting single mothers and introducing payment through
sexual favours.
► Moneylenders often use victims of money lending to assist them
with maintaining their criminal lifestyle and anonymity, for example
illegal money lenders' vehicles are often registered at a clients'
address.
► There is also anecdotal evidence which suggests that illegal
moneylenders have an impact on the wider community in which they
operate with victims resorting to petty crime to enable them to meet
payments.
The report will be considered by the Cabinet on Friday 30 March, and
a further report will be brought forward when the council has
identified how it will invest the money. |
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REGENERATION
LIVERPOOL ANNOUNCES PLANS TO DEVELOP 5 MORE SITES IN THE CITY
REGENERATION Liverpool, a
joint venture between Liverpool City Council and regeneration
specialist Sigma Inpartnership Limited, has announced that it will
be developing at least five new sites across Liverpool, in addition
to its £100 million scheme in Norris Green, where the partnership
has already delivered 115 new homes.
The 5 new areas earmarked for the major regeneration project are the
£200 million Stonebridge Cross development, Gateacre former
comprehensive school site, Lime Street/Renshaw Street/Knowledge
Quarter, Edge Hill District Centre and Lodge Lane baths site.
Subject to the necessary consents, initial works will focus on the
sites in Stonebridge Cross and Gateacre with a view to commencing in
2012/13.
Stonebridge Cross will comprise 60 acres of land and will provide a
new secondary school, a health centre, 600 new homes and retail
facilities with a major food store. Gateacre former comprehensive
school site will be developed to accommodate around 200 new family
homes. Regeneration Liverpool will recycle the value from these new
homes directly back into the provision of new educational facilities
in the city as well as looking at other City Council priorities.
Regeneration Liverpool will
prepare feasibility studies for Lime Street/Renshaw Street/Knowledge
Quarter, Edge Hill District Centre and Lodge Lane bath site, which
will include a variety of uses including commercial and residential
development as well as educational, community and health facilities.
All of the work will be delivered under Regeneration Liverpool,
which Sigma Inpartnership formed with Liverpool City Council in 2007
to support the Council with its ambitious long term regeneration
strategy for the city. The partnership will utilise the skills of
local specialist partners including house builder Countryside
Properties, commercial developer Neptune Developments, Plus Dane and
other local housing associations.
Duncan Sutherland, Chairman of regeneration specialist, Sigma
Inpartnership, said:- "The widening of the partnership
provides a real delivery vehicle for the city council in terms of
regeneration, jobs and investment. The partners are already working
with local communities to deliver projects and the council's
objectives in Norris Green, Stonebridge Cross and other areas of the
city."
Liverpool City Council Leader, Councillor Joe Anderson, said:-
"We're absolutely determined to continue driving forward
regeneration in Liverpool. But in such difficult economic times, we
have to find imaginative ways of working with partners. Regeneration
Liverpool is a really effective way of doing this, bringing together
the best of the public and private sector and creating really
exciting opportunities for our city. The development of these
five key sites is fantastic news for Liverpool, and proof that by
strengthening this innovative partnership, we are leaving ourselves
better equipped to deliver vital regeneration schemes, attract
investment and create thousands of jobs."
Liverpool City Council's Cabinet Member for Housing and Community
Safety, Councillor Ann O Byrne, said:- "Regeneration Liverpool
is a fantastic example of how we can work effectively with our
partners to drive forward regeneration, deliver new homes and build
better futures for our communities. The announcement of these
new development sites demonstrates that the partnership is going
from strength to strength and has the capacity to deliver real
change for our city."
It is Regeneration Liverpool's aim to work as a partnership between
the community, public and private sectors to ensure sustainable and
effective regeneration across the city of Liverpool. |
