Clause 46 - Power of OFT to require information generally
Consumer Credit Bill
12:00 pm
Charles Hendry (Shadow Minister, Trade & Industry; Wealden, Conservative)
The way in which the OFT will interpret its regulatory role and carry out its powers in practice remains relatively vague in many areas, despite the additional guidance. For example, the OFT guidance states:
“From time to time the OFT may publish guidance on its interpretation of aspects of the Act and how it will enforce these. In some circumstances guidance is required by legislation...In other instances, OFT has the power to issue such guidance as it thinks appropriate. Guidance may be of a general nature...or it may relate to particular categories of activities or business.”
The extent to which and the circumstances by which the OFT will enforce its powers remains unclear. This is unhelpful both to the industry and to consumers and I should be grateful if the Minister clarified that. I should also be grateful if he talked further about the role of trading standards services because their duties will, to some extent, be carried out on behalf of the OFT. Does the Minister believe that trading standards services have the capacity to cope with their new work load? Will they be able to carry that out effectively and efficiently to fulfil the Bill’s commitment to improve the licensing and regulatory regime and to sift out unscrupulous lenders and those operating bad practice?
Can the Minister also clarify what additional resources will be made available to trading standards services? We need further assurances on that, despite his earlier comments. Does he accept that the delegation of responsibilities from the OFT to trading standards services will inevitably dilute accountability? That will run contrary to the Bill’s aim of improving transparency and will prove detrimental to consumers.