Breathing Space Scheme: Consultation Response

Debate between Lord Young of Norwood Green and Lord Young of Cookham

Wednesday 19th June 2019 Lords Chamber

[Lord Young of Cookham]

May I, in turn, compliment my noble friend, who was a Minister at the DWP and can perhaps claim some maternity regarding some of the policies we are now discussing? She made a very valid point about the role of your Lordships’ House. I recall the debates on the Bill; it was improved as it went through, partly as a result of the intervention of the noble Lord, Lord Stevenson. My noble friend mentioned publicity, and I entirely agree. When the time is right and we are ready to launch the new scheme, it should of course be well publicised so that those in financial difficulty know that it is available and, crucially, how to access it.

[Lord Young of Norwood Green (Lab)]

My Lords, I do not know whether the Minister saw the recent “Panorama” programme that included a section on guarantor loans and the disgraceful activities of a company that was loading an individual up with another £10,000-worth of debt. Not only was she unable to pay; I think her mother was also involved. I recommend that the Minister watch that programme if he has not seen it, because the activities of some of these companies are reprehensible and are putting people in impossible situations. I heard reference to the possibility of the FCA introducing caps. Can he confirm that the FCA will take action?

[Lord Young of Cookham]

I am not sure whether the noble Lord followed the exchanges in the other place, but an honourable Member raised the question of guarantor loans. I think I am right in saying that the Economic Secretary to the Treasury said that he had recently met the FCA about guarantor loans, so perhaps I could write to the noble Lord about the outcome of that exchange.