Clause 60 - Funding of ombudsman scheme
Consumer Credit Bill
3:15 pm
Mr Laurence Robertson (Shadow Minister, Economic Affairs; Tewkesbury, Conservative)
I beg to move amendment No. 44, in clause 60, page 49, line 41, at end add—
'(16) No licensee shall have to pay to the Ombudsman or its scheme operator any money until such time as the case is decided against him.'.
Perhaps I could provide a little background on how I see the situation, not just on the funding of the ombudsman scheme that clause 60 deals with, but with the general principle. I can illustrate my point with an example. Some time ago, one of my constituents who was an independent financial adviser was reported by a client to the authorities. He was charged £500 for the pleasure of having his case heard. The complaint against him was dismissed, and it might be reasonably assumed that he could claim back his £500. I am afraid that that was not the case. That seems very wrong for two reasons. First, why should he pay anything when the case was dismissed? That seems to fly in the face of justice; we do not normally fine people who have not committed an offence. Secondly, it gives rise to the possibility that vexatious litigants keep reporting someone whom they do not like until that person is bankrupt.
My amendment states:
''No licensee shall have to pay to the Ombudsman or its scheme operator any money until such time as the case is decided against him.''
I do not see what objection there could be to such an amendment. I know that there is a precedent to the opposite effect; and I know that it may affect other legislation. However, I do not see how it can be fair that people should have to pay what are, in effect, fines when they have done nothing wrong. I look forward to hearing what the Minister has to say.