Debt Advice Services
Debate between Lord Mackenzie of Framwellgate and Lord Bates(6 years, 1 month ago)
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Lord Bates
They are of course regulated through the Financial Conduct Authority, which is one reason why a review into high-cost credit is currently under way, looking particularly at the rent-to-buy model, which I know is of particular concern to many people. It recognises that that is an important element of it, and we are taking action on that.
Lord Mackenzie of Framwellgate (Non-Afl)
My Lords, does the noble Lord agree with me that more could be done to resolve problems between debtors and creditors by staged payments, for example, and not immediately bringing in bailiffs, which creates enormous trauma and more expense?
Lord Bates
One provision on precisely that point in the Act that I referred to concerns breathing space. It puts on a statutory footing a structured way in which creditors can be paid the debt but which reflects affordability and the lender’s ability to service that payment. That will come forward for consultation very shortly.