Actor and activist Michael Sheen gave a rousing address at Responsible Finance’s annual conference as he launched the End High Cost Credit Alliance and pledged support and resources for “fair finance” providers.
The Alliance, “a movement founded by me but designed for you,” according to Sheen, is a partnership of around 50 organisations and individuals. It will take a collaborative, pragmatic and independent approach to “tackling the increasing burden of household debt and, in particular, the exploitative credit lending practices targeted at those who can least afford it.”
Sheen described the Alliance as neither a campaign nor a side project, “I’m in this for the long haul….I am here to keep going until we can truly say fair finance IS the mainstream.”
“I have lost count of how many reports and personal testimonies I’ve read and heard about the mental and physical health implications when credit is delivered irresponsibly, or the safety net wasn’t there when needed,” he continued.
“I firmly believe we need to view irresponsible lending as a matter of public health and unlock the expertise and resources in public health alongside that of frontline services providing fair finance.”
The Alliance will focus on five key areas of action:
1. Alternatives. “To make credit fairer for all we seek to influence behaviour change in the flow of major capital to consider investing in fair providers of finance, instead of their high cost credit competitors. We will back fair finance providers, equipping them with the resources to compete and win against high cost credit providers. We’ll do this with money, influence, policy, regulation and public support.”
2. Public debate. “Improving credit for all starts by improving the credit and support options for those most in need but we haven’t yet won over the public.”
3. Regulation, Policy and practice. “Presenting the economic and moral case for change in regulation, law and practice and doing so with the involvement of regulators, law makers and practitioners, informed by the general public, experts and fair credit providers.”
4.The Wider Workforce. “Training workforces across our communities to ensure multiple points of support and signposting to advice and fair finance provision both within the local area and online.”
5. Education. “We’ve gone backwards in the provision of financial literacy in schools and communities across the UK. We’ll work with partners to design and deliver a UK wide approach to school and community based financial education.”
Speaking about the launch of the End High Cost Credit Alliance at the Responsible Finance conference, Responsible Finance Chief Executive Jennifer Tankard said:
“Economic instability, squeezed household budgets, and living costs outstripping incomes have exacerbated the precarious position of many in the UK.
“The responsible finance industry is committed to supporting this market, often providing wraparound services to promote financial wellbeing and literacy and encouraging saving.
“Access to affordable credit from responsible finance providers helped 55,348 people on low incomes, with no savings buffer, to avoid taking on high cost unmanageable debt in 2016-17
“And with increasing concern about rising levels of personal and household debt, responsible finance providers also helped their customers to deposit over £3 million into savings accounts last year.
“But the UK’s responsible finance providers could do even more. We welcome the launch by Michael Sheen of the End High Cost Credit Alliance today at our conference. The Alliance brings together over 50 partners with a collaborative and pragmatic approach to support the providers of ethical, fair and affordable finance – many of whom are our members – and the people they serve.
“Through collaboration and with access to the right investment; tax reliefs; guarantees and fit-for-purpose regulation the industry can expand to have a greater impact on tackling high cost credit and continue to tackle inequality in the UK.”
Before attending Responsible Finance 2018, Sheen spent time with our member Scotcash and some of their customers.
Other speakers at this year’s conference included Christopher Woolard (Financial Conduct Authority), Susan Aktemel (Homes for Good), John Chalmers (Carnegie UK Trust), Thom Kenrick (RBS), Ashwin Kumar (Joseph Rowntree Foundation), Dave Pickering (Lending Standards Board) and a diverse range of panellists and workshop leaders.
A plenary discussion covered “building a financial services sector that works for everyone,” and the event included video messages from John Glen MP (Economic Secretary to the Treasury and City Minister) and Tracey Crouch MP, Minister for Sport and Civil Society.
During the conference Sheen and Responsible Finance chief executive, Jennifer Tankard participated in a live stream event organised by Young Scot and hosted by a panel of young people. They answered questions about how young people can understand finance now and in the future.
What next?
- Read our report, Responsible Finance, The Industry in 2017 for details of how our members supported 34% more customers in 2017 and access to £22 million of affordable credit from responsible finance providers helped 55,348 people on low incomes, with no savings buffer, to avoid taking on high-cost unmanageable debt
- Visit Finding Finance to locate your nearest responsible lender
- Visit the End High Cost Credit Alliance website
- Watch a replay of the Young Scot live stream event
- Look out for the films of Michael Sheen’s and other Responsible Finance 2018 contributors’ speeches on our website soon