Lord Elystan-Morgan
Main Page: Lord Elystan-Morgan (Crossbench - Life peer)
Lord Ahmad of Wimbledon
On the issue of criminal liability, the loans are, first and foremost, in two formats: mortgage-based or mortgage-style loans, which are no longer available; and those which are currently issued, which do not fall within the remit of the Consumer Credit Act. That said, we are currently taking appropriate advice to see whether there are any matters that need to be looked at in this way. Again, I assure the House that if such matters need to be brought to light in the House, appropriate action will be taken either through a Statement or, I am sure, through future Questions tabled in this regard.
Lord Elystan-Morgan (CB)
Is there not one feature that Wonga and the Student Loans Company hold in common—that they hold licences under statutory regulation? The House was told a few days ago that, in respect of Wonga, there will be a careful examination of its capacity to hold properly such a licence. Will the same be done in relation to student loans? In asking this question, I declare an interest as a former president of a Welsh university.
Lord Ahmad of Wimbledon
My understanding is that, in the decision taken at the time under the previous Administration, appropriate advice was followed and decisions were taken in the light of the industry practice. I hear what the noble Lord said. As I said, however, the key difference between Wonga and the Student Loans Company is that Smith Lawson was registered as a trading name with the IPO. It is a key distinction. In the case of Wonga and some of the companies being used, as I understand it, that was not the case.