Agenda item

To receive a report from the Head of Scrutiny and Member Development presenting an update on progress made in responding to the recommendations arising from the Scrutiny review aimed at tackling illegal money lending in Leeds.

The report of the Head of Scrutiny and Member Development presented an update on progress made in implementing the Board’s recommendations linked to its earlier review around tackling illegal money lending.

The following were in attendance for this item:

Neil Evans, Director of Environment and Housing

Dave Roberts, Financial Inclusion Strategy Manager

Gail Webb, Head of Learning Improvement, Children’s Services

Hilary Farmery, Communications Manager, Corporate Communications

Tim Taylor, Health and Wellbeing Improvement Manager

Mike McAughtrie, LIASE, Yorkshire and Humberside, Illegal Money Lending Team

In consideration of the report, the following issues were raised by the Board:

·  Publicity campaign – in acknowledging the level of investment given towards the major publicity campaign launched in March 2014 around tackling high cost and illegal money lending, the Board sought assurance that there would also be sufficient investment in actively campaigning leading up to the Christmas period.

·  Campaign video – it was highlighted that a recent Leeds case had produced a witness willing to discuss his experiences as part of campaign video, similar to the video promoted by Radio Aire, which was shared with the Board.  Members picked up on the sound quality of the Radio Aire video and emphasised the importance of ensuring that the voice of the witness is clearly heard in future campaign videos.

·  Dealing effectively with perpetrators - the Board emphasised the importance of publicising successful prosecution cases linked to illegal money lending to encourage more reporting, but were concerned to learn that two recently convicted loan sharks were given suspended sentences.

·  Money Information Centre (MIC) – Members were informed that further work was being undertaken to develop a recognised brand associated with the MIC in continuing to actively promote alternative options to high cost lending and illegal lending. Following its launch in March 2014, the Board noted that an evaluation of the MIC was being undertaken and would be available shortly.

·  Commitment across directorates - Members welcomed the progress made in implementing its recommendations and praise was also given by the Illegal Money Lending Team for the level of commitment demonstrated across directorates in assisting them in tackling illegal money lending.

·  Raising awareness in schools – linked to recommendation 4, it was highlighted that significant work had been undertaken by Children’s Services in raising greater awareness in local schools.  However, it was noted that further joint working with Children’s Services was needed to ensure that front line staff, and particularly Children Social Workers, were being engaged in relevant training and awareness programmes in line with recommendation 3.  As such, Members agreed to continue monitoring recommendations 3 and 4.

·  Credit Union – Members discussed how the public can access the services of the Credit Union and the financial challenges associated with running branch services, of which there are now six in the city.  Whilst Members advocated that opportunities should be explored to provide more branch services, the Board was pleased to learn that the membership of the city’s credit unions is now one of the highest in the country, with over 28,000 members.

·  Financial Conduct Authority Consultation – Members were informed that the Council had responded to the FCA consultation paper ‘proposals for a price cap on high-cost short term credit’ dated July 2014.  The results of this consultation are expected in November 2014.

RESOLVED –

(a) That the report be noted

(b) That the position status assigned to each of the recommendations be agreed, with the exception of recommendation 4 which is to be changed to category 4 – Not fully implemented (progress made acceptable.  Continue monitoring).