Clause 59 - Financial services ombudsman scheme to apply to consumer credit licensees
Consumer Credit Bill
2:45 pm
Mr Ian Liddell-Grainger (Bridgwater, Conservative)
I wish to ask the Minister for clarification on three areas. First, who will be the gatekeeper to the ombudsman? Will it be Members of Parliament, or will people be able to approach the ombudsman directly? Part of the issue concerns compulsory jurisdiction. It would be helpful if we knew how people will be able to approach the ombudsman.
Secondly, may we have some clarification on subsection (5)? It says:
''The approval of the Treasury is required for an order under subsection (2)(e).''
Subsection (2)(e) reads:
''at the time of the act or omission that type of business was specified and an order made by the Secretary of State''.
Is the Secretary of State then subservient to the Treasury, or will the Treasury be dictating rules on how an individual can bring a complaint to the ombudsman? I am not sure that I quite understand what either provision is intended to achieve. If the Treasury cannot deal with the matter, it seems to go back to the Secretary of State. If that is the case and there is a disagreement between both, the problem then arises that there is no one to make the decision. Would the Treasury and the Secretary of State then go to the ombudsman? I hope that the Minister agrees that that would be ridiculous.
Thirdly, under subsection (2)(f), if the complaint cannot be dealt with under the compulsory jurisdiction, what mechanism will deal with it? Will the complaint be automatically returned to the ombudsman, or does that provision relate to the period before the ombudsman becomes involved? If so, would the individual take the complaint, or would that be done through the Minister's office or by some other mechanism of which I am not aware?