Hampshire County Council

Executive Member for Policy and Resources Item 5

7 December 2007

Illegal Money Lending, Legal Authorisations

Report of the Director of Property, Business and Regulatory Services

1

Summary

1.1

The following decisions are sought:

1.1.1

That Birmingham City Council and the Illegal Money Lending Team be authorised to investigate and institute proceedings against illegal moneylenders operating in Hampshire.

1.1.2

That an agreement be entered into with Birmingham City Council in accordance with Section 101 of the Local Government Act 1972 and other enabling powers delegating powers and duties concurrent with Hampshire County Council's powers and duties in respect of the enforcement of Part III of the Consumer Credit Act 1974, subject to the terms and conditions contained within the agreement.

1.1.3

That the Head of Regulatory Services be authorised to determine the terms of any such agreement; to enter into it on behalf of Hampshire County Council; to terminate it; and, subject to the agreement of the Executive Member for Policy and Resources, to extend it.

1.1.4

That the "Protocol for Illegal Money Lending Team Investigations" set out in Appendix 1 is approved and authority is delegated to the Head of Regulatory Services to approve minor alterations as required to ensure agreement.

2.

Reasons

2.1

In Southern England regional funding has been allocated by the Government to tackle illegal money lending activities in the Cities of Portsmouth, Southampton and Hastings. These are highlighted as having areas of high financial exclusion, which research shows can give rise to illegal money lending. These cities are authorising Birmingham City Council Illegal Money Lending Team, in accordance with Section 101 of the Local Government Act 1972 and other enabling powers delegating powers and duties concurrent with local authority powers and duties in respect of the enforcement of Part III of the Consumer Credit Act 1974

2.2

The Illegal Money Lending Team will primarily target areas within the cities of Portsmouth and Southampton, but it is inevitable that the activities of the illegal money lenders will carry over across the borders surrounding the two cities into the jurisdiction of Hampshire County Council, including Havant, Gosport and Eastleigh.

2.3

The decisions sought will enable the Illegal Money Lending Team of Birmingham City Council to operate outside of the Portsmouth and Southampton City boundaries.

3

Other options considered and rejected

3.1

Not to delegate the authority. The Illegal Money Lending Team would not be able to investigate related illegal activities outside the Portsmouth and Southampton City boundaries. Vulnerable residents within Hampshire would not benefit from the potential protection from loan sharks.

4

Conflicts of interest declared by the decision-maker or Executive Member consulted

4.1

Not applicable

5

Dispensation granted by the Standards Committee

5.1

Not applicable

6

Reason(s) for the matter being dealt with if urgent

6.1

Not applicable

Approved by:

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Date of decision:

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Councillor T K Thornber