Oral Answers to Questions

Debate between Simon Hughes and Mike Crockart

Tuesday 3rd February 2015 Commons Chamber

[Simon Hughes]

There are three specific issues on the table. The first is what we did in December, which allows for new, tough financial penalties on companies—by which I mean companies as a whole—that break the rules. The second is the proposal that we have consulted on and are about to respond to, which would lower the threshold at which enforcement action can be taken and produce a fine of up to £500,000, which should be a deterrent. The issue of holding individual company members to account is more complex and will not be the first of the two things we do.

[Mike Crockart (Edinburgh West) (LD)]

The claims management regulator is often held up as the model for how to limit the number of nuisance calls due to the way in which the number of payment protection insurance call numbers has been reduced. However, recent discussions I have had with the Association of British Insurers indicate that it may not be working quite as planned. Will the Minister commit to a meeting as soon as possible to review whether the process is working as well as possible?

[Simon Hughes]

I recognise my hon. Friend’s assiduous work on this issue and I am very happy to pick up on the issue that the claims management regulation unit may not be as effective in practice as we believe it is in theory. We are determined to protect the public. Nuisance phone calls and nuisance texts, particularly to the vulnerable, are unacceptable. They must be dealt with and we will do that with my hon. Friend’s help.