Some of the institutes contributions to government policy debate Consultation on restrictions for TV payday loan ads Bills of Sale Consultation The provisional Local Government Finance Settlement 2016-17 The introduction of scheduling restrictions for television advertising of high-cost short-term credit Broadcast Committee of Advertising Practice, December 2015 This consultation documents research about the impact of daytime television advertising of payday loans on children. Children persons under the age of 18 are not able in law to engage in loan contracts. However, the study notes that early learning has a greater impact than learning after the age of 18. The research reaffirms that advertisements for loans should not be child-related; it also observes that children pick up on such advertising and when parents say things are unaffordable are apt to suggest that payday loans might be a solution. Comprehensive research in the consultation also notes that a significant number of children and young persons watch television after the 9pm watershed, so as the use of this watershed alone would be insufficient to avoid such influence action should be taken to avoid influencing young persons. The consultation offers three alternative statements, inviting respondents to select one of the three and justify their choice. Based on the well-researched consultation, and on the policy arena in which our members work, CTSI opts for the third statement as that representing the position most in line with its objectives: The introduction of 120-index scheduling restrictions to prevent high-cost short-term credit (HCSTC) ads from appearing in or adjacent to programmes commissioned for, principally directed at or likely to appeal particularly to audiences below the age of 18 is necessary and proportionate. CTSI actively engages in and encourages consumer education, both within schools and post-school. It tries to present a balanced view of the marketplace and alternatives for products that may contain unforeseen risks. As only persons aged 18 and above can engage in payday loan contracts, CTSI wishes to avoid that balance being disturbed during an impressionable period in a young persons life by over-emphasis on just one approach. Lead officer: David Sanders For more information, and to contribute to consultations such as these, visit www.tradingstandards.uk Credits Images: Monkey Business Images / To share this page, in the toolbar click on You might also like CTSI has its say January 2016 stocksolutions / Swapan Photography / Shutterstock Bills of Sale Consultation The Law Commission, December 2015 Although Bills of Sale as a means of funding second-hand car purchase can be a lifeline for consumers, such purchasers are often higher-risk borrowers. Also, when the consumer is in default, credit companies enforcement methods are a real danger to them, and often run totally contrary to the intended safeguards of Consumer Credit legislation. Since at least 1985, CTSI has actively campaigned for the repeal of this archaic legislation and for the uniform application of consumer protections to all forms of lending. Although there remains a need, certainly in the business case, for secured borrowing in the manner of a chattel mortgage where the title to goods is transferred to the lender for the duration of the loan CTSI supports neither the retention of this legislation as drafted, nor the retention of that part of the Hire Purchase Act 1964 that remains on the Statute Book. If the deliberate or accidental consequences of earlier legislation could be removed, a simpler and more understandable credit regime such as existed prior to 1880 could be reinstated, with goods transferred by way of sale or conditional sale, adding a sweeping simplification to other consumer rights protection legislation. CTSI sees the retention of title clause as a significant factor in the creditors decision to lend. Aware that the Bill of Sale has been important in the non-prime market for many years, CTSI is concerned that the repeal of the Bills of Sale Acts would lead to some consumers being denied access to credit for vehicle purchases, unless the retention of title clause is reinstated. For this reason, CTSI supports the removal of the statutory exception to the nemo dat rule no-one gives what he doesnt have, contained in the Hire Purchase Act 1964. Progress of this consultation can be viewed on the Law Commission website. Lead officer: David Sanders For more information, and to contribute to consultations such as these, visit www.tradingstandards.uk CTSI welcomes the increased certainty for local authorities offered by four-year funding settlements provided on request. With luck, this will help councils plan ahead and enable local authority services including trading standards services (TSS) to make long-term choices about service structures. It will allow local authorities to reconfigure where there is a need to achieve savings rather than year-on-year salami slicing and gradual erosion of the service. However, there is ongoing concern about the overall effect of corefunding reductions on smaller local authority services. As part ofthe upper-tier services set, TSS compete with the big-ticket items education and adult social care throughout the budget allocation process. Typically, TSS account for less than 0.2 per cent of an authoritys budget, and the importance of their services can sometimes be overlooked and sidelined. The government has decided to highlight the funding streams for some specific areas of work previously delivered through stand-alone grants to signal the priority the government attaches to these issues and to encourage local prioritisation.1 In its new vision, CTSI argues that core funding for trading standards should be provided directly particularly for market surveillance functions requiring a national approach. At a minimum, an indication of funding made available for trading standards in this way would benefit local authorities and central government, enabling government departments to indicate the importance of these issues, while allowing local authorities flexibility to make informed decisions. Failure to do this in previous years has led to some departments withdrawing their funding from the Revenue Support Grant and directing to trading standards through other routes, because there is nomechanism for government departments to influence the allocation of money. A parallel effect of non-ringfenced core funding can be that government departments have a lack of understanding of the impact of cuts on local authority services. Melissa Dring, CTSI director of policy References 1. The provisional Local Government Finance Settlement 2016-17 and an offer to councils for future years For more information, and to contribute to consultations such as these, visit www.tradingstandards.uk