10/10/2016 Lords Questions

It is already illegal for the security and intelligence agencies

to further the interests of any political party. The bill goes

further by putting the Wilson doctrine onto a statutory footing,

requiring the Prime Minister's approval for the targeting of

parliamentarians the medication is in addition to the Secretarx of

State and additional Commissioner. You have opened up all sorts of

trapdoor is that I would like to go down but I would like to know if you

have actually met with people like the blacklist support group, with

Liberty and organisations who actually have documented evhdence of

police and security service wrongdoing, legal activities --

illegal activities so that we can actually be sure the safegu`rds are

utterly strong enough. I have had round table meetings with a number

of organisations including those representing the journalist

profession and also freedom of information organisations. The

adherence of any public authority to existing legislation is for the

regulators and any complaints can be followed up through those channels,

but I would just say that the bill that we are debating currently

provides for a whole range of additional safeguards on top of

those that exist currently. Her statutory oversight of the tse of

investigatory Powers, greatdr powers for the investigatory Powers

emission to carry out investigations my Lords, I beg leave

to asking the question standing in my name on the order paper. The

Government has transferred responsibility for the regulation of

high-cost credit and debt m`nagement firms to the Financial Condtct

Authority. This more robust regime is hoping to protect consumdrs

better. The Financial Conduct Authority is currently revidwing its

consumer credit rules in relation to called selling, cold calling,

particularly in relation to high-cost credit and debt m`nagement

and expects to publish the outcome of this review by the end of the

year. Cold calling is a hugd problem. The Financial Condtct

Authority acknowledges that many of the 30 million cold calls sdlling

debt management services ard misleading and damaging. In effect

the most financially disadv`ntaged in our society. The Governmdnt has

promised that the review will be published before the end of the

year. Can the ministers say if this review will look at why cold calling

for mortgages has long been banned but not for high-cost credit or four

fee paying debt management services? The answer to the last part of the

question is in relation to what happened with the introducthon of

the right to buy back in thd 19 0s when there was some mis-selling by

mortgage brokers, targeting council house tenants who had the bdnefit of

a huge discount in the well and truly interested in the

creditworthiness of those as mortgage borrowers and that is why

that particular measure was introduced, so as far as cold

calling is concerned, the Government will be introducing the leghslation

through the digital bill whhch will place a statutory obligation via the

Information Commissioner and also in the budget this year provishon was

made to protect vulnerable people from cold calling. Isn't thd case

that the coverage should take action now to actually a finite figure on

what credit organisations c`n charge, especially because ht is

normally the poorest people in the community who pay the highest rates

of interest. We have in introduced a cap on payday loans. Is my noble

friend aware that it is verx welcome that there is that you revidw being

undertaken by the regulator? Nevertheless, it is not just cold

calling. It is advertising that allegedly is being controlldd. I saw

one last night on the televhsion and it was highly questionable. Is it

not a matter of bringing together all the authorities, the advertising

standards authority and the Financial Conduct Authority and the

other bodies and not just h`ving a review but actually in action plan

to sort it out because therd are many elderly people who are being

duped out of thousands of pounds and is it not time we really took some

action on this issue? I unddrstand the strong feelings held by many on

this subject. So far as vulnerable people is concerned, as I s`id in

the budget this year, a large sum of money was identified to help

vulnerable people and enabld them to stop these sorts of calls bding made

and so as far as cold calling is concerned by a debt managemdnt

company or credit card comp`nies, there is a chord and if thex break

it, they can be fined. Last month, one company had to repay ?34 million

because it broke the guidelhnes My Lords, I declare an interest as

patron of Christians against 30 an organisation that is based hn

Bradford. -- Kristian Dacey poverty. With the Minister agree that this is

an area where there is very significant participation bx the

voluntary sector and witty tndertake to draw the attention of thd

Financial Conduct Authority and other authorities to their

participation so that they lay be listened to and their role received

the recognition that will hdlp people in these situations? Of

course. And can I pay tribute to the initiative taken in his setting up

of life-savers, which is a joint prop -- project along with the

church and is helping children to develop good financial habits that a

young age by setting up savhng clubs in primary schools in partndrship

with credit unions. I'll saw welcomed the initiative of the

Church of England in establhshing the just Finance foundation to

develop and implement the vhsion of a fairer and more just financial

system and of course I will take on board the suggestions which are

made. With the Government agree that part of the problem here is that we

have so many different regulators involved with different products,

whether it is the Information Commissioner, trading stand`rds or

the SCA, that there is complete chaos and no one quite knows where

they are protected and with which product and where there is `

problem. If the indicating that only the dissolution that the Government

will bring forward there will be one responsible individual across the

board to coordinate that or is the Information Commissioner's he

proposes a very narrow one? The Information Commissioner covers the

wide variety of called coll`rs. This specific question is about high cost

credit and debt management solutions. What is happening at the

moment is that the Financial Conduct Authority is going through recess of

authorising debt management firms and high-cost credit companhes and

if they do not meet the high standards, they simply will not be

allowed to go on carrying about their business and so it is not the

case that it is a complete shambles. We transferred responsibility to the

Financial Conduct Authority simply because they have a more robust

regime of dealing with the hssue. What measures have we been `ble to

take in relation to the calls that come from overseas? If they are

calling on the of a company based in this country, we can take action

because a high cost credit or debt management company that takds

information from a telephond company based overseas has a responsibility

to make sure that that overseas company acted in accordance with the

code in this country, so we can get at them through the company is based

here. How soon does the noble Lord and Minister expects the ch`nge to

the Financial Conduct Authority will produce action? Because this problem

has been with us and with the large numbers of our fellow citizdns for a

very long time and the Government is saying well of course we nedd a

cold. We know exactly what these companies are doing wrong. Ht is

effective and dictation and then punishment which is required. The

Financial Conduct Authority has brought right to the front of the

queue the process of authorhsing the firms that the noble Lord h`s

referred to. It is going through that process as we speak. And hopes

to complete it relatively soon, depending on the progress that they

make. As I said, those firms do not meet the high standards set, they

will not be allowed to conthnue to carry out their trade. Vulndrable

people and disadvantaged people want, need, desire credit as much as

the rest of us. The problem is they can't afford to get cheap credit

because their credit status is not high enough. I very much welcome the

comments. With the noble lord the minister take back to querids

particularly to the DWP? First, given that so many people are

spending up to 25% of their income on debt repayment and that hs coming

out of benefit income, could we ensure that job seeker's officers

and benefit officers and other outlets, ensure that there hs a

promotion of the credit union initiative and second, will he asked

his colleagues in the DWP to look again at the ending of the social

fund which produced regulatdd, cheap, safe credit for essentials

for people, which is no longer available to them. I agree dntirely

with the idea up moulting credit unions. We want a sustainable

financial services sector and that is why we can invest in ?38 million

of credit unions through thd Department for Work and Pensions

credit union expansion projdct. I am also providing half ?1 millhon to

help Armed Forces personnel access credit union services where they

want to do so. For other initiatives, we are also taking the

support of the credit union sector and I will bring her suggestion

forward to my colleague is that the DWP. Can the Minister confirm that

the Financial Conduct Authority will ensure that the companies do not

participate in any of the forwarding on of contact details of people who

are vulnerable which compild this so-called sucker's list, whhch has

been exposed in which delibdrately target people who are very

vulnerable, often with a degree of impaired mental capacity and who are

in trapped cars of their situation and many of these people have failed

to not take that their detahls can be handed on and therefore

inadvertently have complied with the compiling of such lists. Thd noble

Baroness has put finger on the problem. Many of these calls are not

actually called calls, they are warm calls in and perhaps inadvertently

they have ticked the box on a website which has enabled that site

to contact them at a later date or even worse, share their det`ils with

other providers. I hope this is something which the Financi`l

Conduct Authority can pick tp as it goes through the authorisathon

process and also, as I said in response to the initial question, it

is reviewing the credit consumer rules in relation to cold c`lling at

the moment, and I will ensure that the Financial Conduct Authority have

taken on the very valid point that was just made. I am delightdd to

hear that the Government is reviewing cold calling. I would just

be grateful if my noble fridnd could confirm that the review of cold

calling will also consider banning called calling for pensioners, in

light of the freedoms that have recently been introduced? C`n I take

this opportunity of thanking my noble friend for her servicds at the

Department for Work and Pensions up until last July? Services which I

now find myself having to do some of her work.