Translate the text from English to Welsh.



 
There has been much recent media activity on the Payday Loan Industry which Members will have read with interest. I am providing this Written Statement to update Members on discussions I have had with the Consumer Finance Association (the representative body for the 60% of Payday Lenders) and also to highlight our views on the recent announcement by the UK Government on capping the rate of interest for Payday Loan Companies. I will also outline what we are doing in Wales to support people through Credit Unions and Advice Services.


I had a robust, meeting with Consumer Finance Association on the 21 November. I made very clear my deep concerns about the impact of their members’ activities.  Payday lenders are certainly not a solution for vulnerable people who find themselves unable to meet their day to day living costs.   Borrowing in this way when already in dire straits will only serve to compound their financial difficulties further. This is supported by evidence we have received from organisations such as Citizens’ Advice Cymru who are helping people who have borrowed from Payday Loan companies and have been unable to cope with the burden of the repayments.  It was highlighted to Consumer Finance Association the need to ensure that customers of payday lenders are treated fairly and that lending practices are responsibly carried out.  Concerns were also highlighted about the 15% of payday loan customers who do not make their repayments on time. These are often the most vulnerable people in society and the impact on them can be quite devastating in terms of mounting debt.


It was stressed the need for Payday lenders to have properly trained staff to ensure that they are making the correct decisions on whether an individual is successful in getting a loan, based on their ability to make loan repayments. It was also outlined to Consumer Finance Association the importance of staff ensuring that individuals are aware of the responsibilities they will have when taking out a loan and the amount of money that they will be expected to pay back.


Of course, the regulation of Payday Loan Companies is not devolved and Members will be aware of the recent announcement by the UK Government to introduce a new law to cap the cost of payday loans. The level of the cap, which has not yet been announced, will be decided by the new regulator, the Financial Conduct Authority (FCA) when it comes into being in April 2014\. Also, there will be controls on charges, including arrangement and penalty fees, as well as on interest rates. Welsh Government would very much welcome this move by the UK Government as it aims to reduce the cost of Credit for those who decide to take out a Payday Loan.


Welsh Government looks forward to receiving more information on this as the work develops. It will be interesting to see the detail and the level of cap introduced – both on the interest rate and the administration costs charged by lenders.  This will however need to be implemented appropriately.  For example, the Wales Illegal Money Lending Unit has found that most loan shark victims have already borrowed or attempted to borrow money from doorstep and/or pay day lenders before falling prey to illegal money lenders. It is important therefore, that the interest rate is pitched at the right level and that the correct level of checks are carried out by the lender and that appropriate information is given to borrowers about their repayment commitments. This will assist with more responsible lending practices taking place.


The Welsh Government does support work that aims to improve access to affordable financial products and also supporting advice providers in Wales to help people who are struggling with unmanageable debt and who need advice. Additionally the Discretionary Assistance Fund provides small payments to vulnerable people who are unable to meet their immediate living expenses or faced with a crisis situation.


A number of grants have been recently announced to support free and independent advice services across Wales. This financial year, the Welsh Government is making over £1 million available to support the Not\-for\-profit advice sector to provide a range of front\-line advice services on a range of issues, including debt and welfare benefits advice. We are also investing almost £2\.5 million up until 2015 to support a new project to deliver outreach debt advice in 36 Communities First cluster areas. We know from recent consultation that the location of advice services has a high impact on whether or not some people use them and that people on low incomes generally prefer face\-to\-face advice.


In terms of our longer term vision, my officials are working with representatives from the Not\-for\-profit advice sector in Wales, the Money Advice Services and other key stakeholders to ensure that our approach to supporting advice services in future is soundly based on evidence of need and demand and geared towards supporting those people most in need.


We are also supporting work to ensure affordable borrowing together with simple, practical advice on managing your finances. Credit Unions provide these services and can be especially suitable for people unable to borrow money from other providers such as banks and building societies.  Earlier this month Welsh Government met with the Archbishop of Wales to discuss the work of Credit Unions. We are working together to promote the message that credit unions provide services that can help and support people throughout Wales.  Consideration of the bid by Credit Unions for funding this financial year is being considered and I hope to make an announcement on that shortly.  


 


 







Translation:


 
Yn ddiweddar, mae llawer o sôn wedi bod yn y cyfryngau am y Diwydiant Benthyciadau Diwrnod Cyflog, ac rwy’n siŵr y bydd yr Aelodau wedi dilyn hyn â chryn ddiddordeb. Yn y Datganiad Ysgrifenedig hwn, rwy’n rhoi’r newyddion diweddaraf i’r Aelodau am y trafodaethau rhyngof i a’r Gymdeithas Cyllid Defnyddwyr (sef y corff sy’n cynrychioli 60% o’r Benthycwyr Diwrnod Cyflog) ac hefyd n rhoi ein barn am y cyhoeddiad diweddar gan Lywodraeth y DU ynghylch capio’r gyfradd log i’r Cwmnïau Benthyciadau Diwrnod Cyflog. Byddaf hefyd yn disgrifio’r hyn yr ydym yn ei wneud yng Nghymru i gefnogi pobl drwy Undebau Credyd a Gwasanaethau Cynghori.

Cefais gyfarfod cadarn gyda’r Gymdeithas Cyllid Defnyddwyr ar 21 Tachwedd, gyda chyfle i fynegi barn yn gryf. Dywedais yn gwbl glir fy mod yn bryderus iawn ynghylch effeithiau gweithgareddau aelodau’r Gymdeithas. Yn sicr, nid benthycwyr diwrnod cyflog yw’r ateb i’r rheiny sy’n methu â thalu eu costau byw o ddydd i ddydd. Drwy gael benthyg arian fel hyn a hwythau eisoes mewn caledi, mae eu sefyllfa ariannol yn mynd o ddrwg i waeth. Dyna yw’r dystiolaeth gan gyrff fel y Canolfannau Cyngor ar Bopeth sy’n helpu’r rhai sydd wedi benthyca oddi wrth y Cwmniau Benthyciadau diwrnod Cyflog ac yn methu ag ymdopi gyda’r ad\-daliadau beichus. Pwysleisiwyd i’r Gymdeithas Cyllid Defnyddwyr yr angen i sicrhau bod cwsmeriaid y benthycwyr diwrnod cyflog yn cael eu trin yn deg drwy fenthyca cyfrifol. Mynegwyd pryderon hefyd ynghylch y 15% o gwsmeriaid nad ydynt yn ad\-dalu eu benthyciadau diwrnod cyflog ar amser. Yn aml, pobl agored i niwed yw’r rhain, a gall eu dyledion cynyddol gael effaith gwbl ddinistriol arnynt.

Pwysleisiwyd yr angen i’r benthycwyr Diwrnod Cyflog hyfforddi eu staff yn briodol er mwyn sicrhau eu bod yn gwneud penderfyniadau priodol wrth fenthyca, ac yn sicrhau bod y cwsmeriaid yn gallu ad\-dalu’r arian dyledus. Disgrifiwyd hefyd bwysigrwydd cael staff i sicrhau bod unigolion yn ymwybodol o’u cyfrifoldebau wrth gymryd benthyciad a’u bod yn gwybod faint o arian y bydd disgwyl iddynt ei ad\-dalu.

Wrth gwrs, nid yw’r pwerau i reoleiddio’r Cwmniau Benthyciadau Diwrnod Cyflog wedi’u datganoli, a bydd Aelodau’r Cynulliad yn ymwybodol bod Llywodraeth y DU wedi cyhoeddi eu bwriad i ddeddfu i gapio cost y benthyciadau hyn. Nid yw lefel y cap hwn wedi’i gyhoeddi eto – yr Awdurdod Ymddygiad Ariannol, sef y corf rheoleiddio newydd a ddaw i rym fis Ebrill 2014, fydd yn pennu hwnnw. Gosodir cyfyngiadau ar y taliadau a godir hefyd, gan gynnwys y ffioedd trefnu a chosbau, yn ogystal â’r cyfraddau llog. Byddai Llywodraeth Cymru’n croesawu’r cam hwn gan Lywodraeth y Du yn fawr iawn, gan ei fod yn lleihau cost Credyd i’r rhai sy’n penderfynu cymryd Benthyciad Diwrnod Cyflog.

Mae Llywodraeth Cymru’n edrych ymlaen at gael rhagor o wybodaeth am hyn wrth i’r gwaith fynd rhagddo. Bydd yn ddiddorol gweld y manylion a lefel y capio ar y gyfradd log ac ar y taliadau gweinyddu a godir gan y benthycwyr. Fodd bynnag, bydd angen i hyn gael ei roi ar waith yn briodol. Er enghraifft, mae Uned Benthyca Arian Anghyfreithlon Cymru wedi canfod bod y rhan fwyaf o bobl sydd wedi dioddef oherwydd benthycwyr anghyfreithlon wedi ceisio benthyg arian gan gwmnïau benthyciadau diwrnod cyflog neu fenthycwyr stepen drws cyn hynny. Mae’n bwysig felly bod y gyfradd log yn cael ei gosod ar y lefel gywir a bod y benthycwyr yn cynnal y gwiriadau cywir ac yn rhoi’r wybodaeth briodol i’r cwsmeriaid am yr hyn y maen nhw’n ymrwymo iddo. Bydd hyn yn helpu i sefydlu arferion benthyca mwy cyfrifol.

Mae Llywodraeth Cymru’n cefnogi gwaith sy’n ceisio gwella’r mynediad at gynnyrch ariannol fforddiadwy ac yn cynorthwyo darparwyr cyngor Cymru i helpu pobl sy’n cael trafferth rheoli eu dyledion. Hefyd, mae’r Gronfa Cymorth Dewisol yn cynnig taliadau bach i bobl agored i niwed nad ydynt yn gallu talu eu costau byw o ddydd i ddydd neu sy’n wynebu argyfwng ariannol.

Yn ddiweddar, cyhoeddwyd nifer o grantiau i gefnogi gwasanaethau cyngor am ddim, annibynnol, ar draws Cymru. Y flwyddyn ariannol hon, mae Llywodraeth Cymru’n rhoi dros £1 miliwn ar gael i gynorthwyo’r sector cyngor Di\-elw i ddarparu amrywiaeth o wasanaethau cynghori ar\-lein am nifer o faterion, gan gynnwys dyledion a budd\-dalidadau lles. Rydym hefyd yn buddsoddi bron i £2\.5 miliwn tan 2015 i gefnogi prosiect allgymorth newydd a fydd yn rhoi cyngor ar ddyledion yn y 36 ardal Cymunedau’n Gyntaf.  Gwyddom o’r ymgynghoriadau diweddar a gynhaliwyd ei bod yn well gan bobl ar incwm isel gael cyngor wyneb yn wyneb a bod lleoliad y gwasanaethau cynghori’n ffactor pwysig o ran denu pobl i’w defnyddio.

O ran ein gweledigaeth hirdymor, mae fy swyddogion yn gweithio gyda chynrychiolwyr o’r sector cynghori Di\-elw yng Nghymru, y Gwasanaethau Cyngor Ariannol a rhanddeiliaid allweddol eraill i sicrhau bod y cymorth a roddwn i wasanaethau cynghori yn y dyfodol yn cael ei seilio ar y dystiolaeth o’r angen a’r galw ac yn cael ei anelu at y bobl fwyaf anghenus.

Rydym hefyd yn cefnogi gwaith i sicrhau benthyca fforddiadwy, ynghyd â chyngor ymarferol syml ar y ffordd orau o reoli eich arian. Mae Undebau Credyd yn cynnig y gwasanaethau hyn, a gallan nhw fod yn arbennig o addas i bobl sy’n methu â benthyca arian gan ddarparwyr eraill megis banciau a chymdeithasau adeiladau. Yn gynharach y mis hwn, cyfarfu Llywodraeth Cymru ag Archesgob Cymru i drafod gwaith yr Undebau Credyd. Rydym yn cydweithio i hyrwyddo’r neges bod undebau credyd yn darparu gwasanaethau sy’n gallu helpu a chefnogi pobl ledled Cymru. Mae cais yr Undebau Credyd am gyllid ar gyfer y flwyddyn ariannol hon dan ystyriaeth ar hyn o bryd, ac rydw i’n gobeithio gwneud cyhoeddiad am hynny cyn bo hir.