Clause 52 - POWER OF OFT TO IMPOSE CIVIL PENALTIES
Consumer Credit Bill
10:30 am
Mr Alistair Burt (Parliamentary Private Secretaries To Leader of the Opposition; North East Bedfordshire, Conservative)
The hon. Gentleman is absolutely right, and I am sure that the Minister will address his point. We have received briefings that have made it clear that although the powers of the OFT have been based to some degree on the powers of the Financial Services Authority, in similar circumstances the latter body is not limited to a specified amount when considering a fine. This appears to be an appropriate situation to draw a parallel.
The opportunity to fine gives maximum flexibility, bearing in mind all the circumstances of the case, for the authorities to show their concern. No matter how much money certain companies may have, receiving a very large fine would have an exemplary effect in discouraging unfair practices; it would finally hit them where it hurts, and for most commercial companies where it hurts is in the wallet. For those reasons, my hon. Friend's amendment is more than justified, and I hope that, on balance, we might assist the Minister by giving him the opportunity to respond positively.