Debt Management Advice

Baroness Kramer Excerpts

Monday 7th September 2015 Lords Chamber

[Lord Ashton of Hyde]

My Lords, although lead generators are independent and not regulated, the FCA requires debt management firms accepting leads from lead generators to satisfy themselves that the business has been procured fairly and in accordance with data protection privacy in electronic communication laws. The FCA is going through the authorisation process at the moment, as I said, and that is one of the things that will be taken into account. It has to ensure that the lead generators do things such as signpost to consumers the availability of free debt advice. The FCA has committed to undertake a review of its rules on unsolicited marketing calls, emails and text messages from consumer credit firms. Lastly, of course I am always pleased to meet the noble Lord.

[Baroness Kramer (LD)]

My Lords, the House will remember that the Government dithered on tackling the abuses by payday lenders until the noble Lord, Lord Sassoon—the Minister in the Lords at the time—took personal action and drove the change. Will Ministers today consider doing the same, because cold calling is making victims of vulnerable people on a daily basis?

[Lord Ashton of Hyde]

As I just said to the House, the FCA is looking at this. We are not in a position to instruct the FCA on what to do, but there are actions that can be taken on unsolicited calls that I can go into if noble Lords want.