Clause 9 - Notice of sums in arrears under fixed-sum credit agreements etc.
Consumer Credit Bill
10:15 am
Norman Lamb (Shadow Secretary of State for Trade & Industry, Trade & Industry; North Norfolk, Liberal Democrat)
I have some sympathy with amendment’s attempt to address a mischief. It seems to be all about the law of unintended consequences.
As I understand it, the home credit market often works in such a way that if payments are delayed—perhaps, as the hon. Gentleman suggested, because the debtor is simply out when the collector calls, or because there has been an agreement between them that repayment will be delayed a little—and, cumulatively, four weeks of payments are missed and a notice has to be served, the debtor could end up being caused unnecessary anxiety. If the proposal impinges on the proper flexibility of the agreements, and if the debtor is not actually prejudiced by delayed payments—that is, if the debtor does not have to pay any more and is allowed to pay at a later date—that would be too onerous. There is potential to cause unnecessary anxiety and be overly bureaucratic. Does the Minister accept that there is a genuine concern about how the provision will work? If so, is the amendment a way of addressing that concern, or does he have an alternative approach to ensure that the process is not overly bureaucratic and does not cause unnecessary anxiety to the debtor?