Vanquis banished from Spindles following Second Lib Dem Campaign

Vanquis Bank, a sub-prime lender targeting those with a poor credit rating and multiple debts, has vanished from the Spindles Shopping Centre after a second successful campaign by the Oldham Liberal Democrats.

Vanquis Bank, a subsidiary of doorstep lender Provident Finance, operates in the sub-prime lending market offering a credit card requiring a typical interest payment of 39.9% to UK residents with a ‘limited or uneven credit history’.

It has been criticised on credit forums such as Money Saving Expert, established by financial journalist Martin Lewis, for the high interest charges on these cards and the high charges levied on defaulted payments.

The Liberal Democrat Group, led by Cllr Howard Sykes, first successfully campaigned for Vanquis to be banned from having a stand in the Oldham Bus Station in the autumn after an appeal to Transport for Greater Manchester.

Vanquis then moved on into the Spindles Shopping Centre and the Liberal Democrats raised their game.

Cllr Sykes wrote a letter to the manager of the centre asking the new American owners for their support.

In the letter he stated: “Vanquis actively targets and impoverishes poor people by trapping them in a cycle of debt. I therefore ask you to withdraw permission for Vanquis (or similar sub-prime lenders) to operate from a stand in Spindles Town Square and to instead work with Oldham Council to promote access to a stand for staff from the Council’s Financial Inclusion Team and the Oldham Credit Union”.

Cllr Sykes was gratified to receive a very speedy and positive response by Mike Flanagan Centre Manager, with Vanquis denied the use of Spindles to market their products after only a few days.

He said: “I am grateful to the manager and owners of the Spindles Shopping Centre for their support. This is an example of town centre retailers acting responsibly to help us combat legal loan sharks.

I now hope that we can promote Credit Union services to shoppers in time for Christmas, but I also hope that other town centre retailers will not offer this company houseroom – we do not want to move this legal loan shark to other locations in our town centre, we want to say go away, you – and your ilk – are not welcome in our Borough.”

Copy letter below:

Mr Mike Flanagan
Manager
Spindles Town Square Shopping Centre
Unit 50 George Street
Oldham
OL1 1HD

Dear Mr Flanagan,

Re: Request for Removal of Vanquis

The Oldham Liberal Democrat Group on Oldham Council is committed to driving out of the Borough the legal loan sharks who prey on the poorest citizens in our Society.

Oldham Council has tonight unanimously supported a motion proposed by the Liberal Democrat Group condemning legal loan sharks.

Vanquis Bank, a subsidiary of doorstep lender Provident Finance, had until recently had a marketing stand in the Oldham Bus Station. Following a campaign by Liberal Democrat Councillors, Transport for Greater Manchester agreed to withdraw permission for Vanquis Bank to operate from the bus station. Unfortunately, Vanquis has subsequently relocated to the Spindles Shopping Centre.

At the stand in Spindles, company representatives have been seen to be handing out promotional brochures, and a number of people consider them to be harassing passers-by entering the Centre.

The Oldham Liberal Democrats would like the new Management of Spindles Town Square Shopping Centre to ban Vanquis from the Centre, and I shall explain why.

Vanquis operates in the sub-prime lending market offering a credit card requiring a typical interest payment of 39.9% to UK residents with a ‘limited or uneven credit history’. It has been criticised on credit forums such as Money Saving Expert, established by financial journalist Martin Lewis, for the high interest charges on these cards and the high charges levied on defaulted payments.

Vanquis actively targets – and let’s be candid about this – ‘poor’ people who cannot access cheaper credit elsewhere, to put them further into debt. These individuals often already have multiple debt issues and have limited means from which to make repayments.

Vanquis effectively impoverishes poor people by trapping them in a cycle of debt.

I am sure that retailers at Spindles Town Square wish to retail responsibly and offer customers quality products at a reasonable price; Vanquis do not.

I therefore ask you to withdraw permission for Vanquis (or similar sub-prime lenders) to operate from a stand in Spindles Town Square and to instead work with Oldham Council to promote access to a stand for staff from the Council’s Financial Inclusion Team and the Oldham Credit Union.

I am of course happy to discuss this with you in more detail.

Yours sincerely

Howard Sykes