Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, if he will bring forward proposals to ban the promotion of high-risk credit products through unsolicited direct marketing mail and telephone calls.

The Government has, as part of its action plan to address nuisance calls, made it easier for the Information Commissioner’s Office (ICO) to take action against nuisance callers. The Government has removed the legal threshold requiring the ICO to prove a firm has caused ‘substantial damage or substantial distress’, and increased the level of fine available to punish rogue companies.

The Financial Conduct Authority is also committed to ensuring that cold calling by phone, text or email makes clear the identity of the firm, and the purpose of the communication, so the consumer can decide whether to proceed. Such promotions are also required to include a representative example or APR. Regulated firms must comply with data protection and Telephone and Mail Preference Service requirements.

In addition, the FCA has committed to review its rules on unsolicited marketing calls, emails and text messages from consumer credit firms, including payday lenders. The review will include specifically looking at whether these unsolicited communications should be banned, given the potential for causing significant distress to consumers. The FCA will publish the outcome of that review by the end of the year.