Clause 9 - Notice of sums in arrears under fixed-sum credit agreements etc.
Consumer Credit Bill
11:00 am
Mr Laurence Robertson (Shadow Minister, Economic Affairs; Tewkesbury, Conservative)
The hon. Lady makes a fair point, but I am concerned. The industry itself is pressing for eight weeks, but I have suggested six, which I think is a reasonable compromise. As I have said, I am arguing for two points of view. I am arguing for the protection of the borrower, but also that we should not have too much administration, bureaucracy and regulation heaped on top of what is a successful credit industry. The mischief that the Bill seeks to deal with does not exist too much in the small loans sector. That is why I have compromised by suggesting six weeks rather than eight. It would be a little heavy-handed for somebody who is perhaps only £20 behind in payment under the terms of their agreement to start to receive letters that suggest taking debt advice and counselling on debt. It is too heavy-handed; I cannot put it any clearer than that.
I wish to pick up on another point. I am straying slightly from my amendment, so you can rule me out of order, Sir John, if I stray too far. In subsection (9)(b), reference is made to a ''small agreement''. It is my understanding that a small agreement is now £50, which is a very low sum indeed. Has the Minister any intention to increase that? I am straying way beyond the thrust of the amendment, so I will stop there.