Student Loans: Misleading Practices

Lord Stevenson of Balmacara Excerpts

Thursday 3rd July 2014 Lords Chamber

[Lord Ahmad of Wimbledon]

First, I assure my noble friend and, indeed, the House that this practice has ceased. It was brought to our attention on 27 June. I believe that since then only two further letters have been issued manually, in error. I take on board the point that my noble friend makes. This afternoon, the chairman of the SLC will talk to my right honourable friends the Secretary of State for Business and the Minister for Universities and Science. They will look at what other remedial action is necessary. However I assure the House, once again, that this activity has now ceased.

[Lord Stevenson of Balmacara (Lab)]

My Lords, when similar practices were undertaken by Wonga we learnt that it was going to make redress to those affected by letters of this type, in significant amounts of money. Can the Minister confirm that all students who have been similarly affected in this way will also receive redress?

[Lord Ahmad of Wimbledon]

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.