Consumer Interests: World Consumer Rights Day
Debate between Viscount Younger of Leckie and Lord Wrigglesworth
Viscount Younger of Leckie
My Lords, well informed, confident consumers are vital to building a stronger economy. Our plans will mean that consumers can be confident of their rights in everyday situations and that businesses will spend less time working out their legal obligations when they get complaints from customers. Since 2011, we have streamlined and brought coherence to a landscape that was previously confusing and therefore inefficient for consumers.
Lord Wrigglesworth (LD)
My Lords, one issue which concerns many consumers and no doubt many in this House is the state of many of our pubs and the number of closures that are taking place. Does my noble friend not agree that many such institutions have come out of the tyranny of the brewers—I am sure that we can exclude Young’s brewery from that—into the even worse tyranny of highly geared pubcos? Will the Government take action to stop the exploitation of tenants by pubcos and the closure of some 26 pubs every week?
Viscount Younger of Leckie
My Lords, the Government value the pub industry and recognise the important contribution that pubs make to the fabric of local communities and to jobs and growth in the wider economy. We recognise that there are serious concerns about the relationship between pub-owning companies and their tenants. This is why we have published our consultation on a statutory code and an independent adjudicator for the sector: to enshrine the core principle that a tied tenant should be no worse off than a free-of-a-tie tenant. I cannot comment on the final proposals in advance of the government response to the consultation.
Consumer Protection
Debate between Viscount Younger of Leckie and Lord Wrigglesworth
Viscount Younger of Leckie
We agree that it is inappropriate for vulnerable people to pay high charges for accessing vital public services, and we are clear that a more consistent approach is needed. The Cabinet Office now runs a cross-departmental group to consider customer telephone lines. This group has made some good progress in drafting guidance on prefix number selection and establishing best practice. We will publish the guidance and have a standing remit to ensure that it is kept up to date.
Lord Wrigglesworth (LD)
My Lords, will my noble friend look at the plight of some bank customers with dormant accounts? Is he aware that a current account can be declared dormant after a year’s inactivity and a deposit account can be declared dormant after just three years? It can take six months for people to get their own money back in those circumstances. Will he ask the banks to notify customers more clearly and more readily that their accounts are to be made dormant and will he try to get the banks to speed up the repayment of people’s own money?
Viscount Younger of Leckie
The Dormant Bank and Building Societies Accounts Act was passed in November 2008 and included a requirement for the Government to undertake a review. The legislation set out the specific questions that the review should cover: for example, how many banks and building societies have transferred balances; how much money has been transferred and how promptly; and how effective the arrangements have been for meeting claims. HM Treasury is currently undertaking the review. The closing date was 21 October, and the report will be laid before Parliament by March 2014.