Clause 60 - Funding of ombudsman scheme
Consumer Credit Bill
3:15 pm
Mr Gerry Sutcliffe (Parliamentary Under-Secretary (Employment Relations, Competition and Consumers), Department of Trade and Industry; Bradford South, Labour)
It will come as no surprise to the hon. Gentleman that the Government will resist the amendment. It is a principle of the ADR scheme that it is self-funding, and amendment No. 44 could make that impossible. It is also a fundamental principle of the ADR that it should be free to the consumer. That ensures that all consumers have access to redress mechanisms, not just those who can pay for them. The ADR funding arrangements should recognise the unequal bargaining positions of firms and consumers. I seek to correct that imbalance so that cost is not a barrier for consumers when seeking redress.
Under clause 60, the ADR scheme would be funded by a modest annual levy, and a case fee will be payable by those businesses against which complaints are considered. There will be a levy and a case fee. The majority of firms will never pay the case fee. Their cases do not get as far as requiring ADR—
Sitting suspended for a Division in the House.
On resuming—