Clause 104
Tribunals, Courts and Enforcement Bill [Lords]
3:00 pm
Vera Baird (Parliamentary Under-Secretary, Department for Constitutional Affairs; Redcar, Labour)
Amendment No. 173 would require those who operate debt management schemes to be
“approved by the relevant supervisory authority’.
The Bill contains what is in a sense a double-decker scheme. A scheme that wants to benefit from the powers set out in clauses 109 to 116 will have to be approved by the supervisory authority dealt with in clause 106. However, seeking such approval is optional; scheme operators will have to decide whether they want to offer an enhanced scheme. When schemes do not have the approval of the supervisory authority, they will still be able to offer debt management schemes, but they will not have the powers available to those who do have such approval. The schemes that do not have the new powers will operate as they do now and will be totally dependent on the voluntary participation of the creditor.
I hope that the hon. Gentleman accepts that there is a scheme for approval and that those who choose not to seek approval will have only a limited range of powers available to them, although they will be able to offer a service based on the voluntary acceptanceof debtors. No doubt such acceptances will be forthcoming. I hope that that flexibility is sufficient for the hon. Member for Braintree, because it commends itself to the Government.