Written Question · S4W-23907 · Session 4
What progress it has made in implementing each of the points in its action plan to tackle pay day lending.
The question
To ask the Scottish Government what progress it has made in implementing each of the points in its action plan to tackle pay day lending.
The answer
The action plan to tackle payday lending set out 12 action points. Progress on each action has been set out below.
1. Introduce the Financial Health Service which provides access to a range of money advice services and financial education, including a website and public information campaign.
The Scottish Government launched Scotland’s Financial Health Service (SFHS) website on 3 December 2014. The website is a hub of information and advice, bringing together different strands including financial education and advice on debt, employability and access to ethical and affordable lending, including a post-code search facility to identify appropriate credit unions and local sources of money advice. A television and press marketing campaign to raise awareness of the SFHS website commenced on 2 January 2015.
2. Explore how to further promote credit unions as potential alternative lenders as a key part of the SFHS.
I have chaired two meetings of the recently established credit union working group. The remit of the group, which includes representatives from the credit union sector and the Scottish Government, is to promote credit unions in Scotland. As an example, this engagement has led to the agreement that all credit unions across Scotland are promoted through SFHS website.
3. Invite the Financial Conduct Authority (FCA) to be part of the Scottish Government’s round table on payday lending which involves lenders, advice agencies and Trading Standards. Opportunity to promote good practice, highlight poor practice and raise Scottish concerns with FCA.
I chaired a meeting with stakeholders from the advice agencies, Consumer Finance Association and Trading Standards to discuss the proposals for the cap. The FCA were represented and provided a presentation on the proposals for the capping of high-cost short-term credit for comment and discussion by the group. This informed my response to the FCA consultation which was issued on 21 August 2014.
4. Scottish Planning Policy to include policy to support local planning decisions seeking to address over proliferation and clustering of the activities of concern.
The Scottish Planning Policy, launched in June 2014, includes national planning policy about the proliferation of activities such as pay day lending outlets and betting shops and the impacts on the character and amenity of town centres and high streets and the wellbeing of communities.
5. Consult on changes to remove the existing exemptions from planning control for betting offices and certain financial services.
The public consultation on planning legislation contained technical changes and closed on 14 November 2014. We are still considering the responses. The consultation was technical in nature and relates to legislative changes to the Use Classes Order and the General Permitted Development Order. Currently these mechanisms allow premises selling financial, professional and other services to change use to betting office or pay day loan related activities without requiring planning permission. The Smith Commission recommended the Scottish Parliament should have the powers to control the proliferation of pay day loans shops. This is necessary as planning cannot effectively control the sale of a particular financial service from variety of outlets.
6. The Scottish Government will continue to argue for responsibility for the regulation of gambling to transfer to the Scottish Parliament.
Through the Smith Commission process we have argued for further devolution of gambling policy. Now the commission has completed its work and recommended the devolution of a power in respect of fixed odds betting terminals, we continue to seek to engage with the UK Government on the delivery of that commitment.
7. While the power to regulate gaming, betting and lotteries lies with Westminster, Scottish Government will continue to seek to influence the UK Government’s gambling policy.
We have continued to press the UK Government to take actio
1. Introduce the Financial Health Service which provides access to a range of money advice services and financial education, including a website and public information campaign.
The Scottish Government launched Scotland’s Financial Health Service (SFHS) website on 3 December 2014. The website is a hub of information and advice, bringing together different strands including financial education and advice on debt, employability and access to ethical and affordable lending, including a post-code search facility to identify appropriate credit unions and local sources of money advice. A television and press marketing campaign to raise awareness of the SFHS website commenced on 2 January 2015.
2. Explore how to further promote credit unions as potential alternative lenders as a key part of the SFHS.
I have chaired two meetings of the recently established credit union working group. The remit of the group, which includes representatives from the credit union sector and the Scottish Government, is to promote credit unions in Scotland. As an example, this engagement has led to the agreement that all credit unions across Scotland are promoted through SFHS website.
3. Invite the Financial Conduct Authority (FCA) to be part of the Scottish Government’s round table on payday lending which involves lenders, advice agencies and Trading Standards. Opportunity to promote good practice, highlight poor practice and raise Scottish concerns with FCA.
I chaired a meeting with stakeholders from the advice agencies, Consumer Finance Association and Trading Standards to discuss the proposals for the cap. The FCA were represented and provided a presentation on the proposals for the capping of high-cost short-term credit for comment and discussion by the group. This informed my response to the FCA consultation which was issued on 21 August 2014.
4. Scottish Planning Policy to include policy to support local planning decisions seeking to address over proliferation and clustering of the activities of concern.
The Scottish Planning Policy, launched in June 2014, includes national planning policy about the proliferation of activities such as pay day lending outlets and betting shops and the impacts on the character and amenity of town centres and high streets and the wellbeing of communities.
5. Consult on changes to remove the existing exemptions from planning control for betting offices and certain financial services.
The public consultation on planning legislation contained technical changes and closed on 14 November 2014. We are still considering the responses. The consultation was technical in nature and relates to legislative changes to the Use Classes Order and the General Permitted Development Order. Currently these mechanisms allow premises selling financial, professional and other services to change use to betting office or pay day loan related activities without requiring planning permission. The Smith Commission recommended the Scottish Parliament should have the powers to control the proliferation of pay day loans shops. This is necessary as planning cannot effectively control the sale of a particular financial service from variety of outlets.
6. The Scottish Government will continue to argue for responsibility for the regulation of gambling to transfer to the Scottish Parliament.
Through the Smith Commission process we have argued for further devolution of gambling policy. Now the commission has completed its work and recommended the devolution of a power in respect of fixed odds betting terminals, we continue to seek to engage with the UK Government on the delivery of that commitment.
7. While the power to regulate gaming, betting and lotteries lies with Westminster, Scottish Government will continue to seek to influence the UK Government’s gambling policy.
We have continued to press the UK Government to take actio
In the Official Report
No contribution in the Official Report cites S4W-23907 by reference.