Financially Excluded To Be Put In The Spotlight

The Association of British Credit Unions (ABCUL) is set to discuss Britain’s increasing debt problems at the upcoming conferences of the three major political parties, it has been revealed.

Under the series of fringe meetings, the association will examine the impact that being financially excluded has had on the poorest members of society and ways in which such pressure can be alleviated. In addition, the discussions will also focus on those unable to access competitively-priced borrowing options who as a result may turn towards bad credit loans.

All entitled A Financial Wilderness? The social impact of the rapid increase in credit exclusion of our poorest citizens, the meetings will see Mark Lyonette, chief executive of ABCUL, speak about plans to increase the availability of affordable borrowing - whether this be via secured loans or credit cards. He will also talk about work the association is involved with in regards to the Joseph Rowntree Foundation, which seeks to create a not-for-profit ‘home credit model’.

Meanwhile, Ann Ellison, a spokesperson from Policis, an independent consultancy which specialises in evidence based policy development, is to talk about loan lenders and the shortfall between the non-standard finance market - which may include bad credit loans - and provision within the third sector. John Lamidey of Cattles, a company working with ABCUL throughout the series of meetings, will consider the impact that the increase in consumers with damaged financial records is set to have on the need for non-standard borrowing products such as adverse credit loans.

The meetings will also consider the options of those Britons who have been turned down for standard borrowing products “if the third sector is not equipped to fill the gap” as it attempts to bring about a greater acceptance of the positive effects that the non-standard finance sector can have. In addition, the Labour meeting is to feature James Plaskitt, the parliamentary under secretary of state for the department of work and pensions, while Treasury spokespersons Vince Cable - from the Liberal Democrats - and the Conservative Party’s Mark Hoban are to preside over their respective party conferences.

Commenting on the announcement, Mr Lyonette said: “The increase in bad debt that has rocked financial markets in recent weeks is likely to result in increased regulatory controls and tightened lending criteria from mainstream lenders and the non-standard finance sector alike. The fringe meetings will explore the impact this will have on lower income consumers.”

Pointing to the association’s collaboration with Cattles, Mr Lyonette added: “This sort of cooperation is vital if the credit union movement is to be able to provide a socially responsible alternative to high cost lenders at a scale which will have a significant impact on financial exclusion in the UK.”

Earlier this year, Simon Beames, mortgage adviser for the Independent Mortgage Advice Bureau, claimed that loan lenders need to do more to help bad credit loans borrowers. He suggested that providers need greater flexibility and should provide more advice to those who are struggling to meet monthly payment demands. Overall, he suggested that “lenders have got to be a bit more responsible”. Mr Beames’ comments follow a Citizens Advice study showing the rate of repossession of property from mortgage lenders has doubled over the last two years.

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