Glasgow fights back against predatory payday lenders

Payday lenders are under attack in Glasgow like nowhere else in the UK, writes Phillip Inman, Economics Correspondent of The Observer and The Guardian. 

Without waiting for Westminster politicians to tackle the burgeoning instant loan industry, Glasgow City Council has banned all access to Wonga and its lookalikes in libraries and colleges. Glasgow's trading standards officers tour shopping parades to check on offers for loans agreements and APRs that breach the Consumer Credit Act.

Mike Dailly, Principal Solicitor of Govan Law Centre, is challenging the contracts that allow payday lenders to snatch their customers' bank-account funds, while also defending people who, in the most extreme cases, take out £200 loans only to find their home being repossessed.

The crackdown coincides with the biggest promotion of credit unions anywhere in the UK. As an alternative to banks, these unions may conjure up an old-fashioned image in the minds of many people, but in Glasgow they are taking to the high street and can be found inside the swankiest shopping centres. One in four Glaswegians now have a credit union account. 

According to the council treasurer Cllr Paul Rooney, this go-it-alone approach is necessary to scale down an annual £57m binge on payday loans, door-to-door credit and pawnbrokers that affects one in five of the city's population. In November, the council will begin allocating credit union accounts to new secondary school pupils and handing them £10 toward their savings.  Read the full story in The Observer here.

Glasgow fights back against predatory payday lenders

BBC Radio 4's Money Box discussion of successful tribunal challenges to bedroom tax decisions

BBC Radio 4's Money Box has discussed the issue of successful first tier tribunal challenges to the bedroom tax (Saturday, 14 September 2013). You can listen to GLC's Principal Solicitor explain the implications of the Fife Law Centre cases decided by Tribunal Judge Simon Collins Q.C on the BBC iPlayer. There is also a reference to current challenges for disabled tenants and occupiers based on unlawful discrimination and ECHR caselaw. The discussion starts 19 mins into the show on the BBC iPlayer here. GLC is in the process of updating its 'Bedroom Tax Toolkit' to take on board the lastest case law developments - more details as soon as possible.

BBC Radio 4's Money Box discussion of successful tribunal challenges to bedroom tax decisions

Govan Law Centre seeks Trainee Solicitor

Govan Law Centre is seeking a new Trainee Solicitor to join its award winning legal team.  The role will include defending evictions and mortgage repossessions as part of our new Prevention of Homelessness City Rights Hubs in Glasgow City, along with undertaking work in our Govanhill Law Centre office, working with the Roma community and EU migrant workers.

The new post will also have scope to undertake legal work within our national Education Law Unit, which provides expert advice and representation in the field of Scots education law. There may also be an opportunity to undertake Scottish Parliamentary law reform and social justice campaign work. We believe this is a fantastic opportunity for someone who has a demonstrable passion for social justice in Scotland.

Please send CV and a relevant covering letter to: Mike Dailly, Principal Solicitor at Govan Law Centre, 18-20 Orkney Street, Glasgow, G51 2BZ or m@govanlc.com. Closing date noon, Friday 27 September 2013. No recruitment agencies necessary thank-you. 

Govan Law Centre is a Registered Scottish Charity SC030193 http://www.govanlc.com/ And aims to be an Equal Opportunities Employer. You must hold, or be entitled to hold, a valid Entrance Certificate from the Law Society of Scotland to apply for this post, in relation to a proposed start date of October/November 2013.

Govan Law Centre seeks Trainee Solicitor

Govan Law Centre to draft Bill to prevent vulnerable Scots being evicted for bedroom tax arrears

Glasgow's Govan Law Centre (GLC) is delighted to announce that it's 'No Evictions for Bedroom Tax Arrears petition' will now be taken forward as a Member's Bill in the Scottish Parliament. The sponsoring member is Jackie Baillie, the Shadow Cabinet Secretary for Welfare and MSP for Dumbarton. GLC has agreed to provide full legal and policy support in the drafting of the proposed legislation and accompanying documents.

'Under-occupancy deductions' are losing tenants of councils and housing associations in Scotland £12 per week on average, with some tenants losing as much as £22 per week in housing benefit. Around 105,000 households in Scotland are affected by the bedroom tax, of which 80% contain a person with a disability.

When it comes to Scottish rent arrears eviction actions in sheriff courts, often the success or failure of a tenant in preventing eviction will turn on a few pounds per week, for example the standard payment for arrears direct is £3.55 per week. Accordingly, £12 to £22 per week being deducted from rent payments under the bedroom tax creates the perfect storm for a major increase in evictions and homelessness in Scotland, as tenants are unable to downsize or find extra money from very low incomes.

Govan Law Centre's Chairman, Tommy McMahon said: "Govan Law Centre has suggested a small amendment to section 16 of the Housing (Scotland) Act 2001 which would prevent 'bedroom tax rent arrears' being used to establish or justify a crave for eviction, and instead the landlord could obtain a payment decree for these 'type of arrears', and pursue them an ordinary debt".

"We are very grateful that Jackie Baillie MSP has agreed to champion this law reform proposal, and stand up for Scotland's most vulnerable tenants. It makes no economic sense to evict tenants, disabled people and children for bedroom tax arrears when they cannot downsize to a smaller property in practice, obtain a smaller specially adapted home, or find an extra £50 per month from breadline benefits. The Scottish Parliament has the power to protect tenants from the bedroom tax and it's time to act'.

GLC is also supporting the calls - along with Shelter Scotland and many others - on the Scottish Government to find £50m for social landlords to off-set the impact of the bedroom tax.

Govan Law Centre to draft Bill to prevent vulnerable Scots being evicted for bedroom tax arrears

GLC cautions against presuming non-payment of bedroom tax arrears leads to 'intentional homelessness'

A number of recent housing articles and commentators have suggested that where a tenant is evicted due to the inability to pay rent due to under-occupancy (bedroom tax) deductions, they will 'usually be classified as intentionally homeless', and not be entitled to alternative accommodation as a homeless person. This is not a correct statement of the law in Scotland or England, Wales or Northern Ireland.

The statutory intentional homelessness test requires a deliberate act or omission in consequence of which accommodation is lost. This essentially requires local authorities to consider the issue of fault. For example, in the English Court of Appeal case of William v. London Borough of Wandsworth the court expressed this test as follows:

"I accept, of course, that it was for the authority to explain why it took the view that the failure to pay monies due under the mortgage was 'deliberate' within the meaning of section 191(1) of the 1996 Act: or, to put the point the other way, why the failure to pay monies due under the mortgage was not properly to be treated as 'non-deliberate' – in the sense that it was forced upon the applicant through no fault of his own" (at para 36, [2006] EWCA Civ 535).

Where a tenant is paying rent (by way of housing benefit) but accrues rent arrears due to the effect of the bedroom tax and is unable to take any reasonable steps to avoid this, then there would be a strong presumption that this was not the 'fault' of the tenant. If so, a tenant in such circumstances who lost their home should not be deemed intentionally homeless. There is ample authority for this principle, for example:

In R v. Tower Hamlets London Borough Council ex parte Mahmood a council tenant was evicted for arrears.  She was found to have become homeless intentionally. Sir Louis Blom-Cooper Q.C quashed the council’s decision as it failed to indicate whether the council had found that Ms Mahmood deliberately failed to pay her rent – as opposed to being in multiple debt and unable to pay.

R v. Tower Hamlets London Borough Council ex parte Ullah (1992) 24 HLR 680 was a case where an owner occupier in multiple debt sold his house to repay debts: insufficient enquiries were made into the necessity of this course of action and a decision of intentional homelessness was quashed by the court.

Tenants in the South and North East of Glasgow can contact Govan Law Centre's Prevention of Homelessness team for further advice and where possible legal representation: (t) 0141 440 2503.

GLC cautions against presuming non-payment of bedroom tax arrears leads to 'intentional homelessness'