WIREDGOV

Plans to reduce the numbers of payday lenders on the high street was discussed at Scotland’s first Payday Lending Summit in Glasgow yesterday.

Representatives from local authorities, financial advice services, welfare organisations and credit unions will gather for the inaugural event to talk about ways of revitalising town centres by minimising the presence of payday lenders.

The impacts of payday lending shops, the need to develop regulation and review new planning and licensing approaches to prevent individuals from spiralling into debit, will be among the topics on the summit’s agenda.

There are an estimated 180 to 200 payday lending premises on Scotland’s high streets.

Speaking ahead of the event at the Trades Hall in Glasgow Local Government Minister Derek Mackay said:

“Up and down the country payday loan companies are blighting our town centres and exposing vulnerable people to credit they cannot afford.

“The StepChange Debt Charity’s recent report found that 13 million people in the UK face chronic financial insecurity and knowing that a small change in personal circumstances would within weeks push them into debt.

“The Scottish Government is already taking steps to tackle this issue through legislation, with the Bankruptcy and Debt Bill 2013 now awaiting Royal assent, and we have used our devolved powers to remove business rates relief from pay lenders with premises in Scottish towns.

“But we are committed to doing more. Since we announced our summit in January we have received a great deal of support from local authorities and stakeholders who are keen to share their experiences of debt. We want Scotland to lead the way and address this damaging activity so we will be looking at preventative measures and discussing projects which are working successfully in different local authority areas.

“Just this week we heard evidence of organised crime involved in payday loans. We want to stamp this out and review the regulations.

“Tackling the increasing numbers of payday lending businesses will not only stop more people being driven into poverty, but will help give our town centres a sense of identity and be more attractive places for people to live, work and visit.”