Clause 61 - Consequential amendments relating to ombudsman scheme

Consumer Credit Bill – in a Public Bill Committee at 5:30 pm on 28th June 2005.

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Question proposed, That the clause stand part of the Bill.

Photo of Gerry Sutcliffe Gerry Sutcliffe Parliamentary Under-Secretary (Trade and Industry) (Employment Relations and Consumer Affairs)

The clause makes consequential amendments to the 1974 Act and the Financial Services and Markets Act 2000, to allow for the introduction of an alternative dispute resolution scheme.

The clause makes various amendments to the 2000 Act. It adds references to the consumer credit jurisdiction alongside references to the voluntary and/or compulsory jurisdiction where appropriate. That ensures that the consumer credit jurisdiction can operate effectively alongside the existing jurisdictions—that deals with the point raised by the hon. Member for Hornchurch. An amendment to the 2000 Act will allow the FOS to specify the maximum limit of compensation that can be awarded under the consumer credit jurisdiction.

Another change provides for regulations to be made to allow the FOS to disclose information about cases and the decisions to the OFT. That information can be used by the OFT in deciding whether a lender is fit to hold a licence. Under the clause, the OFT can also provide information and advice to licensees on the introduction and operation of the ADR scheme. That information will be agreed in advance with the FOS. Further details on how the OFT and the FOS will work together will be set out in a memorandum of understanding between the two organisations, a draft of which has been seen by the Committee.

The clause is necessary to ensure the consequential amendments are made to the 1974 and 2000 Acts. I hope that the Committee will support it.

Question put and agreed to.

Clause 61 ordered to stand part of the Bill.