Consumer Rights Bill

Debate between Baroness Bakewell of Hardington Mandeville and Baroness Hayter of Kentish Town

Wednesday 22nd October 2014 Grand Committee

[Baroness Hayter of Kentish Town]

I have never heard the noble Lord, Lord Hodgson, describe himself as a butcher before, but he talked about coming in with a cleaver. I thank him for tabling Amendment 50 and for the way he moved it. I was delighted to give it my complete support. My amendment is simply to ensure that what he has asked for is available at least once a quarter, as there will be many instances where, particularly with phone bills—I cannot remember who I phoned last week, never mind three months ago—it would be very difficult to divvy up a bill like that if it was only once a quarter.

As the noble Lord said, this is a forerunner, in a way, of the debate on Monday on Amendment 53. He spoke about the banks. If we include regulated industries, of course, that might well cover banks. In a way, they are almost like a utility at the moment, so I am sure that a form of words will develop. The principle, as he said, is clear: it is bad enough paying a bill, but to be charged to get your bill is adding insult to injury. For me, the principle is clear that the sending of an invoice and, indeed, the paying of that invoice, is part and parcel of the contract, not something completely separate for which we should be charged.

We know that consumers are pretty insulted when a provider tries to decide for them how they will receive a bill. Eight out of 10 adults do not like it when companies take away their right to choose how they receive communication and four out of 10 worry that they might miss a payment if they do not get a paper statement and that their financial records would be incomplete without paper statements. Like all of us, the public do not understand why they should have to pay a fee for a bill, rather than it being included in the basic cost of a service.

Some people are particularly affected by this. Rather like those people who do not have a computer when they go on holiday, as we spoke about on the last amendment, some people do not have a computer at home. Such people, and there are a lot of them, cannot print off something to keep for their records, even if they can see it on their iPad. Another affected group is people who share accommodation and therefore share bills. They still like a bill that they can look at and maybe take a copy of, so they can know how to split it. There are also people whose carers or families help them in the payment of bills. Again, a paper bill that you can discuss is important for that, and for knowing who is dealing with which one. Those who are struggling to make ends meet very often have to juggle which bill they are going to pay next in order to avoid being cut off, or something like that. It is much easier, for many of us, to do that with a piece of paper.

Bills also fulfil other purposes. If you want to get a parking permit in London you have to have a utility bill in your own name and to your own address. That is difficult enough for those of us who have more than one name. If you cannot even get a paper copy, it makes it very difficult. There are other purposes for which you have to show a bill addressed to your home, including, I think, opening a bank account.

The other group of people for whom I think that it is particularly important to have a paper bill are probably the Members of your Lordships’ House. Having declared my interest as someone who still does my paperwork and my payment of bills in that way, I move my amendment and give my wholehearted support to the main amendment.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I support Amendment 50. I have an elderly father who is 91 and who has recently been extremely ill. While looking through his paperwork, I found a number of bills that needed paying. We discussed this and I said, “Why don’t you set up a direct debit?”. He definitely did not want to do that. He felt that he would lose control of what was going on in his life and his finances. He liked the security of filling out a cheque and sending it in the post, with a copy of the bill or the counterfoil on the bottom of it. He felt that that was the way that he could make sure that his money stretched, that he had money at the end of the month and was able to pay all his bills. He is not a man who did not want to enter the technological age. He bought a computer—much to my utter amazement—because Lidl had them on special offer. He loves Lidl. He joined a course to teach him how to use to the computer, and my husband and son went over to help him to set the computer up and get to grips with it. However, he did not use it often enough to be able to use the skills that he had been taught in his computer classes, so he was never going to be able to pay all his bills from the internet. My father is not on his own. Lots of people want the security of a paper bill and of being able to pay by cheque or a direct debit—because my father has direct debits for some things, such as council tax. They want that security, and I think that they ought to be able to have that.

Consumer Rights Bill

Debate between Baroness Bakewell of Hardington Mandeville and Baroness Hayter of Kentish Town

Wednesday 15th October 2014 Grand Committee

[Baroness Hayter of Kentish Town]

My Lords, Amendment 24, which stands in my name and that of my noble friend Lord Stevenson, addresses a very serious and sometimes fatal weakness in consumer protection for electricity safety: when there is a generic and dangerous fault in a particular model of electrical goods. There is no adequate mechanism whereby other owners of the same make and model are notified of the need to stop using it and exchange it.

The amendment therefore requires manufacturers to inform enforcement agencies of the number of consumers affected, and of the extent and type of damage and injuries that have been caused. It also requires the Secretary of State to publish information on dangerous products and to consult consumer groups when publishing their five-yearly report on consumer protection regulations.

This is an issue of great sadness, because it is very much about deaths and injuries. There are probably 40 or 45 deaths a year in domestic fires that have been caused by faulty appliances. Although there is a system for manufacturers to recall faulty products, it is very flawed because of the difficulties of alerting customers who have unwittingly bought such faulty products. It has also been undermined by unjustifiable delays on the part of some manufacturers in recalling products, even once they know them to be unsafe. Such cases relate to potentially fatal faults, such as risks of fire, electrocution or carbon monoxide poisoning.

It has been estimated that there are up to 2 million unsafe products in people’s homes. Manufacturers currently have no obligation to declare how many of those dangerous appliances are in circulation. Once manufacturers become aware of faults in their goods there is no specific timeframe in which they have to take action. In several instances, manufacturers have taken years to take action after a fatal accident caused by one of their appliances. Current BIS guidelines say that a recall is expected,

“as soon as the manufacturer becomes aware of a problem”.

That is not specific—more than that, it is not mandatory.

The Government do not feel that this should be mandatory; they want to continue with the voluntary approach. In the Commons, the Minister said that most—I emphasise, most—businesses take their customers’ safety seriously. I do not think that is good enough: “most industries” is not “all industries”. We have to safeguard consumers not from the good businesses but from those which do not take safety seriously.

Electrical Safety First detailed a particularly sad case of a preventable death that happened because of failures in the recall system—I am sure other noble Lords have received the same information. Mr Santosh Benjamin-Muthiah, a 36 year-old father of two, died in 2010 because of a fire in his home caused by a recalled fridge-freezer. The manufacturer had been aware of a fault with the defrost timer on that defective fridge-freezer three years before 2010, but did not issue a safety notice until 2011, by which time as many as half a million had been sold. In 2013—two years after the recall had started—the manufacturer estimated that, although 190,000 had been repaired and 186,000 were scrapped, about 114,000 were still unidentified and still in someone’s home. The coroner at the quite recent inquest on Mr Benjamin will, I think, have written to the Chief Coroner rather than to the Government. However, he has written through his official channels calling for the creation of a simple, easy-to-use and government-funded all-national website where all products can be registered and accessed by consumers and retailers. He also called for increasing fines for manufacturers who fail to notify and for the creation of a code of practice on product recalls. The Chief Fire Officers Association has also called for manufacturers to take legal responsibility for eradicating risks caused by faulty appliances. Peter Dartford of the Chief Fire Officers Association has said:

“The reality is that it is the manufacturers who have created these risks and it is their moral and legal responsibility to ensure that these risks are eradicated from homes”.

Our amendment would strengthen consumer protection in line with the coroner’s recommendation and the fire officers’ views. Perhaps even more importantly, our amendment is in line with the views of the families, who have been quite needlessly bereaved of their loved ones. I beg to move.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I support this amendment and I thank the noble Baroness, Lady Hayter, for her example of Mr Benjamin, as it saves me the trouble of giving that same very tragic example. It seems not unreasonable for the trader to record the consumer’s details at the point of sale and return the guarantee card to the manufacturer. This would seem a more efficient way of dealing with it than the present, somewhat haphazard system of leaving it to the consumer to fill in and return the guarantee—a document which is often at the bottom of the packaging and sometimes overlooked. If such a system were in existence, it would be much simpler to compile a register of consumers and contact them individually when and if a product recall is necessary. This would ensure that all those affected by product recalls were aware, rather than some being left in the dark about the risks they run by continuing to use the product.

Consumers, once they are aware of a product recall, are generally assiduous in returning their products to the relevant trader for repair or replacement. This is particularly important, as we have heard, where the product has an electrical fault which could lead to damaging and life-threatening domestic fires. The fire service, as we also heard, is able to produce quite frightening statistics on domestic fires caused by electrical faults, some of which tragically involve death. It is really important that we do all we can to protect consumers from this fate and I am pleased to support this amendment.