Consumer Protection
Debate between Viscount Younger of Leckie and Lord Kennedy of Southwark
Lord Kennedy of Southwark
To ask Her Majesty’s Government what legislation or other proposals they have to update the protections for consumers from unfair practices.
Viscount Younger of Leckie (Con)
My Lords, rogue traders who mislead and bully consumers, some of whom are the most vulnerable in our communities, are a blight on society. Research by Consumer Focus found that they cause more than £3 billion-worth of detriment to consumers each year. The Government recently announced legislation to make it simpler and clearer for consumers to fight back by giving them new rights to seek redress and, where appropriate, compensation for the damage that they cause.
Lord Kennedy of Southwark (Lab)
My Lords, we have range of people and companies ripping off people who play fair: those who mis-sell PPI, rogue claims management companies, dodgy builders, people selling fake goods and people breaching copyrights. For a whole range of services, the Government use premium-rate phone lines so that when people phone for help and advice they pay over the odds for the privilege. For example, when bereaved people phone the Bereavement Service for help and advice they are charged over the odds. Is not the Minister ashamed of that? When are the Government going to put people first?
Viscount Younger of Leckie
We agree that it is inappropriate for vulnerable people to pay high charges for accessing vital public services, and we are clear that a more consistent approach is needed. The Cabinet Office now runs a cross-departmental group to consider customer telephone lines. This group has made some good progress in drafting guidance on prefix number selection and establishing best practice. We will publish the guidance and have a standing remit to ensure that it is kept up to date.
Supermarkets: Pricing
Debate between Viscount Younger of Leckie and Lord Kennedy of Southwark
Lord Kennedy of Southwark
To ask Her Majesty’s Government what discussions they have had with the major supermarkets on delivering simple and clear pricing for consumers.
The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Viscount Younger of Leckie) (Con)
The Government agree that supermarket prices should be clear so that consumers can make informed choices. The Minister for Employment Relations and Consumer Affairs held a working group meeting with the supermarkets in May to discuss unit pricing and clarity of shelf-edge labels. We are working closely with the supermarkets and look forward to their continued positive engagement to make improvements that help consumers compare pricing information.
Lord Kennedy of Southwark (Lab)
Does the noble Viscount not realise that we have a cost of living crisis in this country? Can he tell the House why the Government are not doing more to ensure that consumers are properly informed of the cost of everyday essentials?
Viscount Younger of Leckie
I should reassure the noble Lord that we are doing much. Since the working group in May, BIS has continued to engage with supermarkets to explore where further improvements can be made, and has agreed to work with supermarkets to identify barriers to doing this. We are aware that there is a bite on household spending and we are doing as much as we can to deal with that.
Payday Loans
Debate between Viscount Younger of Leckie and Lord Kennedy of Southwark
Lord Kennedy of Southwark
To ask Her Majesty’s Government what further action they plan to take to tackle the issue of payday lending.
The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Viscount Younger of Leckie)
As I highlighted in last week’s debate, the Government are deeply concerned at the evidence of consumer harm in the payday loans market. That is why the Government and regulators have jointly announced a strong action plan, with both immediate and longer-term measures. Tough enforcement and compliance action by the OFT now, combined with a move to a new regulatory regime equipped to deliver robust consumer protections in the future, will tackle the real concerns about this market.
Lord Kennedy of Southwark
My Lords, the most reverend Primate the Archbishop of Canterbury and I both called for a summit on payday lending in the debate last Thursday, so on the face of it the Government’s announcement is very good news. Then we get the announcement in the CSR today of the seven-day waiting period for benefits. That must have Wonga and the rest of the payday lenders jumping for joy. What assurance can the noble Viscount give the House that the summit is not a sham exercise and that something will actually come out of it?
Viscount Younger of Leckie
I welcome the noble Lord’s mention of the summit and am delighted that this will be an opportunity for the Government and regulators to take stock of progress in delivering on actions set out on 6 March. It will provide a firm forum for discussion of what more is needed to address the outstanding concerns, and I look forward the results. The announcement was made by my honourable friend Jo Swinson.