Government Adopts Scottish Definition of ‘Pay Day Loan Shop’ (almost)

For which no less than 27 exemptions in the new GPDO aply in new UCO Amendment

The Town and Country Planning (Use Classes) (Amendment) (England) Order 2015

Amendments to the Use Classes Order

2.—(1) The Use Classes Order is amended in accordance with the following paragraphs.

(2) In article 3(6) (exclusion from use classes), at the end, for the full stop substitute a comma and insert—

(n)as a betting office,

(o)as a pay day loan shop.

(3) After article 3(6) (exclusion from use classes), insert—

(6A) For the purpose of paragraph (6)—

“high-cost short-term credit” has the meaning given in the edition of the Financial Conduct Authority’s Handbook which came into effect on 1st April 2014 (following an amendment by the Authority in the Consumer Credit (Consequential and Supplementary Amendments) Instrument 2014(1)); and

“pay day loan shop” means premises—

(a)

from which high-cost short-term credit is provided principally to visiting members of the public and includes premises from which such credit is provided in addition to other financial or professional services, and

(b)

which, but for provision made in this article, would fall within Class A2 (financial and professional services) of the Schedule to this Order.

(4) In Part A (Use Classes) of the Schedule, in Class A2(c) omit “(including use as a betting office)”.

This is pretty much exactly the sensible definition the Scottish Government consulted on recently. 

As the scottish consultation said ‘In many cases, …, PDL may form only a limited aspect of the range of financial services offered from the premises and may be a part, perhaps only a very small part, of the overall use of the premises.’  In other words it probably wont meet the ‘primary purpose’ test for a change of use.  Interestingly the government has adopted  the solution I suggested back in Nov 2104. But without the sophistication of the Scottish approach, no exemption for example for Pawn Shops and Credit Union branches.

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