Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make it his policy to increase sanctions on companies that approve credit applications for people subject to Court of Protection Orders.

Protecting vulnerable consumers is a key priority for the Government and the Financial Conduct Authority (FCA), which regulates the consumer credit market.

Financial institutions are entitled to provide credit to individuals who have a Court of Protection Order. Approval of these applications are individualised in line with the principles of the Mental Capacity Act and FCA guidance which can found at: https://www.handbook.fca.org.uk/handbook/CONC/2/10.html.

The guidance makes clear that firms should take reasonable steps to ensure that they have suitable business practices and procedures in place for the fair treatment of customers who they understand, or reasonably suspect, have or may have a mental capacity limitation. This includes customers who are subject to Court of Protection Orders.

The FCA proactively monitors the market to ensure firms follow its rules and it has various methods to punish breaches. There is no limit on the fines it can levy and it can require firms to compensate consumers. In addition, consumers have recourse to the Financial Ombudsman Service for independent arbitration if they believe their formal complaint to a firm has not been dealt with satisfactorily.