RESPONSIBLE CREDIT / UK CONFERENCE "Fair Finance and Responsible Lending" (14/15 Nov. 2005) Report has been published. 130 persons from social organizations with about 10% from the supplier side attended the important UK conference. The extensive report is documented here. The conference "FAIR FINANCE AND RESPONSIBLE LENDING" was held in London - November 14-15, 2005 and was organised by Debt on Our Doorstep/UK with the participation of: New Economics Foundation/UK, Oxfam/UK, Community Development Finance Association/UK and the National Community Reinvestment Coalition/USA 130 persons, mostly from the United Kingdom, attended the third conference of the network on responsible credit in Europe. About 10% of participants came from the supplier side (banks and other mainstream financial institutions); another 20% represented credit unions and alternative credit providers in the social sector. Government and quasi-governmental institutions, such as the Financial Services Regulators, were also represented. The vast majority of attendees came from organizations such as the Money Advice Association, the Citizens Advice Bureaus, anti-poverty groups, several non-for-profit trusts, cooperative centers, and consumer organizations and associations. The 2-day conference made it clear that Fair Finance and Responsible Credit are no longer exclusive issues of the consumer associations. In fact, the absence of the National Consumer Council (London), although invited, showed that community workers and advocates, anti-poverty groups, church action organizations and all kinds of consumer advice institutions and help agencies may be far more focused on the widespread problem of financial services than many in the traditional consumer movement. The findings and conclusions from the conference can be summarized briefly: (i) That banks must live up to their obligation to provide access to bank accounts and other banking services (in line with the NEF work and statement on this issue); (ii) That, further, banks should disclose where and to whom they lend, in order for Government and community stakeholders to examine and, together, oversee bank practices that may lead to unjustified and unfair financial exclusion or extortionate practices; (iii) That lenders need to share data, while protecting privacy, in order to avoid reckless lending and inviting over-indebtedness of vulnerable consumers; (iv) That the UK should design and adopt a CRA-type legal framework that clarifies (with legal recourse) the obligation of banks and mainstream lenders to serve their communities without exclusionary or extortionate practices, consistent with principles of safety and soundness; (v) That credit at any price is contributing to increased poverty and is trapping consumers in endless cycles of spiraling debt - and that responsible lending requires lenders to lend sensibly and at fair prices. There needs to be an explicit duty in consumer protection legislation that requires lenders to act responsibly; (vi) That, whilst credit unions and CDFIs were an important part of the solution, the current levels of provision are inadequate, and greater levels of investment are required -- from banks and other lenders as well as Government -- in order to address this deficit; (vii) That these six elements form the basis of a common program for agencies and concerned citizens in the U.K to bring before our policymakers and financial institutions. ID: 36980 Author(s): iff Publication date: 08/03/06     Report on Conference and Workshops "Debt on our Doorstep, Fair Finance & Responsible Lending" (209439 Bytes)

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