To ask Her Majesty's Government what assessment they have made of the damage caused to vulnerable people by high cost log book loans; why they have decided not to proceed with the Goods Mortgages Bill through the Law Commission’s special procedure; and what alternative steps they intend to take to increase consumer protection.
In September 2014, the Government asked the Law Commission to examine the Bills of Sale Acts, and the Law Commission published a draft Goods Mortgages Bill in September 2017. The Government published a consultation alongside the draft bill.
On 14 May 2018, the Government published a response to the consultation. Due to concerns raised in the consultation, the shrinking size of the logbook loan market, and wider work on high-cost credit, the Government decided not to take the Goods Mortgages Bill forward at this time.
The Government has given the FCA strong powers to protect consumers. The FCA has decided to look in more detail at logbook loans, using their supervisory and policy tools to assess whether they need to take action. The Government will continue to work closely with the FCA to ensure that all customers are treated fairly.