Clause 59 - Financial services ombudsman scheme to apply to consumer credit licensees
Consumer Credit Bill
5:15 pm
Adrian Bailey (West Bromwich West, Labour)
I welcome the measure, but will the Minister clarify further how the scheme would apply, bearing in mind the remarks made on Second Reading by my right hon. Friend the Member for Leeds, West (John Battle), which I endorsed, about the need for a complaints procedure that would enjoy the confidence of potential victims of unfair credit practices, and be mindful of the fact that many of the people who fall foul of credit companies have low levels of education, a great fear of any court or judicial processes and a great fear of the organisation that is lending them money?
According to the provisions, people have to exhaust the internal procedures of the credit company before they can use the financial ombudsman's service. I understand the reason for that, which is the need to avoid the ombudsman's service being swamped by sometimes trivial or inconsequential cases. On the other hand, we must ensure that the person who perceives that they have been unfairly treated does not feel intimidated in undergoing a process that would enable them to redress their grievance.
Will the Minister reassure us that everyone who enters into a credit agreement must be informed in the simplest and clearest way of the avenues that are open to them if they feel unfairly treated, and that there should be severe penalties for any company that uses any form of intimidation that stops anyone using the provisions that are available to them?