Student Loans: Misleading Practices Debate

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Student Loans: Misleading Practices

Lord Elton Excerpts
Thursday 3rd July 2014

(10 years, 4 months ago)

Lords Chamber
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Lord Ahmad of Wimbledon Portrait Lord Ahmad of Wimbledon
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As the noble Lord may well know, this practice started in 2005, and since then a great number of letters have been issued. As to the differences between Wonga and Smith Lawson and Company: first, no charges were made for the letters that the latter issued; and secondly, the name Smith Lawson was set up as a trading name and, in accordance with procedures, was registered with the Intellectual Property Office. However, as I have already said, the Secretary of State and the Minister responsible for this area are looking at the situation, and I shall of course let the House know of any further action that needs to be taken.

Lord Elton Portrait Lord Elton (Con)
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My Lords, my noble friend has just told the House the astonishing fact that this practice started nine years ago. What responsibility do departments hold for the oversight of agencies responsible for work in their area?

Lord Ahmad of Wimbledon Portrait Lord Ahmad of Wimbledon
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Ultimately, responsibility lies with the relevant Minister. The decision in 2005 was made by the board of the Student Loans Company, BIS and the Minister responsible for the area at that time. It is right that Ministers should ultimately be responsible for all government agencies in the departments in which they lie.