The nasty world Vickers missed

In his banking review, John Vickers said there isn’t enough competition among high street banks. He

Doorstep lending and loan sharking is causing misery for thousands of people across the country right now, but a small credit scheme is fighting back in east London and it has had some good news.

Fair Finance, based in Stepney, has raised £1m for its loan book from Société Générale and BNP Paribas so it can offer loans to poor families that are at the mercy of doorstep lenders and loan sharks – no collateral required.

It was set up five years ago by Faisel Rahman to provide funds to those typically rejected by the banks. They typically borrow up to £500 for items such as a new oven or school uniforms.

Fair Finance runs repayment over about a year and charges an annual percentage rate of 44 per cent. It helps customers set up bank accounts and encourages the reporting of loan sharks to the police. Its default rate is just 7 per cent and the company now employs 12 people.

This system of microlending is similar to that of the Grameen Bank, started in Bangladesh by the Nobel prizewinner Professor Muhammad Yunus, now sadly battling opponents of his own after being forced to retire as Grameen's head.

The problem in the UK is that people rejected by banks as being too high a risk resort to doorstep lenders, who bring the cash to your door but charge up to 2,500 per cent. This is big business.

There are two problems at work here. The Competition Commission has warned that there aren't enough lenders prepared to take on the high-risk market (otherwise known as "poor people"). And loan sharks are flourishing because enforcement rules aren't tough enough.

But the Labour MP Stella Creasy has been steering a private member's bill through parliament. The Consumer Credit (Regulation and Advice) Bill was parked in February; however, it will return in October. Here's more about the whole issue in detail.

Trading Standards officers across the country want the bill to become law so that they can work with the police to take on the worst offenders they know by name. Doncaster has been doing some great work this way.

But, on this issue as usual, the anti-regulation-more-red-tape brigade can't see the wood from the trees.

Trading standards officers are council officials, so it would be a big help if the Communities Secretary, Eric Pickles, backed the bill. Think it through and there's an efficiency saving here which also prevents people falling into deeper problems.

But will Pickles get involved? He may need a little gentle persuading. So why don't you email him and try a bit of "nudge" behavioural change?

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Donald Trump vs Barack Obama: How the inauguration speeches compared

We compared the two presidents on trade, foreign affairs and climate change – so you (really, really) don't have to.

After watching Donald Trump's inaugural address, what better way to get rid of the last few dregs of hope than by comparing what he said with Barack Obama's address from 2009? 

Both thanked the previous President, with Trump calling the Obamas "magnificent", and pledged to reform Washington, but the comparison ended there. 

Here is what each of them said: 

On American jobs

Obama:

The state of our economy calls for action, bold and swift.  And we will act, not only to create new jobs, but to lay a new foundation for growth.  We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together.  We'll restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost.  We will harness the sun and the winds and the soil to fuel our cars and run our factories.  And we will transform our schools and colleges and universities to meet the demands of a new age.

Trump:

For many decades we've enriched foreign industry at the expense of American industry, subsidized the armies of other countries while allowing for the very sad depletion of our military.

One by one, the factories shuttered and left our shores with not even a thought about the millions and millions of American workers that were left behind.

Obama had a plan for growth. Trump just blames the rest of the world...

On global warming

Obama:

With old friends and former foes, we'll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet.

Trump:

On the Middle East:

Obama:

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy. 

Trump:

We will re-enforce old alliances and form new ones and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the earth.

On “greatness”

Obama:

In reaffirming the greatness of our nation we understand that greatness is never a given. It must be earned.

Trump:

America will start winning again, winning like never before.

 

On trade

Obama:

This is the journey we continue today.  We remain the most prosperous, powerful nation on Earth.  Our workers are no less productive than when this crisis began.  Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year.  Our capacity remains undiminished.  

Trump:

We must protect our borders from the ravages of other countries making our product, stealing our companies and destroying our jobs.

Protection will lead to great prosperity and strength. I will fight for you with every breath in my body, and I will never ever let you down.

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland