Schedule 2 - Part 3A of Schedule 17 to the 2000 Act
Consumer Credit Bill
5:30 pm
Charles Hendry (Shadow Minister, Trade & Industry; Wealden, Conservative)
I would be grateful for a couple of points of clarification.
First, the fee section in new paragraph 16C states:
''Consumer credit rules may require a respondent to pay to the scheme operator such fees as may be specified in the rules.''
Can the Minister make it more clear what those fees will be for? Will they be penalties or fines? What will they be for and why will people be paying those fees to the scheme operator?
Secondly, the paragraph on procedure for consumer credit rules, new paragraph 16E, reads:
''If the scheme operator makes any consumer credit rules, it must give a copy of the them to the Authority without delay.''
What does the Minister mean by the reference to making consumer credit rules? There has been a lot of debate and discussion as the Bill has gone through Committee, and that may be the clarification that we have all sought. Is there the scope to avoid issues going to court, for example, by having rules and guidelines clarified and set down so that both lenders and borrowers have a clearer understanding of what is permissible under the legislation? If that is the case, that would be very welcome.