Clause 8 - OFT to prepare information sheets on arrears and default
Consumer Credit Bill
9:55 am
Gerry Sutcliffe (Parliamentary Under-Secretary (Employment Relations and Consumer Affairs), Department of Trade and Industry; Bradford South, Labour)
I am grateful to my right hon. Friend, who speaks with authority on what happens at the bottom end of the credit market where people tend to be in the most difficulty. The whole reason for the Bill and the need to examine the 30-year-old Act was, at the request of all stakeholders—the industry as well as consumer groups and those people affected by the legislation—to try to create the transparency that appeared to be missing on the products that are available and the details of those products.
Clause 8 is specific to the OFT and the information sheet that will be issued by it. All that lenders must do is to inform people when issues of arrears and default start to happen—that is not at the start of the agreement, as I indicated earlier, but at the default stage.
The hon. Member for Wealden raised questions that I do not have detailed answers to, so I shall write to hon. Members about those issues, such as people with disabilities. If my answers are insufficient, I am sure that he will come back to me on Report. However, we feel that the clause meets the necessary requirements. It was well discussed and consulted on with the industry and stakeholders, and we feel that it is proportionate.