The Own Art scheme, which offers interest free loans to members of the public to purchase contemporary art, is on hold after the bank providing credit to support the scheme pulled out. The decision, by HFC Bank, a subsidiary of HSBC, is also likely to affect Arts Council Englands (ACE) ability to launch Take It Away, a similar scheme to support the purchase of musical instruments. To date, more than 7,000 people in England and Scotland have used Own Art to purchase art valued in excess of £5.5m.
ACE is currently making alternative arrangements to secure a new credit provider to revive the scheme which was established in 2004. No one from HFC was prepared to comment on its decision but the move is believed to be part of a review of the banks portfolio of loans and is not thought to be linked to any problems with Own Art. The bank has served notice and credit facilities will end at the beginning of May. Until then, customers can continue to apply for loans at galleries which are partners in the programme but no new galleries will be allowed to sign up. Loan repayment arrangements for existing customers, and for anyone taking out a loan between now and 6 May, will be unaffected by the changes. In a statement, ACE said We are committed to the future of Own Art and& we will be doing everything possible to ensure that an alternative credit provider is found as soon as possible. Unfortunately due to timescales involved it may be that we need to suspend the scheme for a period of time to allow for the implementation of changes to the loan application procedures that may be introduced by a new credit provider. There are currently 305 member galleries registered in England plus a further 40 in Scotland.
Published: 26-02-2007