Consumer Credit Bill

moved Amendment No. 40:"Page 54, line 33, at end insert—" ““(   )   No order under subsection (2) bringing into force sections 19 to 21 shall be made by the Secretary of State until advice and information have been published by the OFT under section 140D of the 1974 Act.”” The noble Lord said: This amendment ensures that before the sections relating to unfairness are brought into force the OFT will have published relevant advice and guidance. Many of the detailed provisions of the Bill are to be made by order or through the OFT by guidance, notice or clarification. This creates uncertainty for lenders who require sufficient notice for implementation, given the scale of the changes that will be required to lenders’ processes and IT systems. Indeed, the IT implications of the reforms resulting from the Bill are significant, and the absence of a clear picture of the policy detail at this stage will make essential planning difficult for business. We are asking that commencement dates will allow for sufficient consultation on the outstanding detail of the Bill and give adequate lead time for implementation. Credit Action has said that undue rushes in attempted implementation could lead to corners being cut, staff not being properly retrained and thus the purpose of the Bill being undermined. It could also lead to lenders simply putting lending on hold, potentially precipitating a credit squeeze. The Minister in the other place said that it would only be fair to ensure that the Government did not impose burdens on business. He said that where there is a legitimate case for a timeframe to be put in place, he will be happy to discuss it with the industry. He said that consultation will take place with all the interested stakeholders, ranging from small businesses and lenders to large companies that can accommodate change quicker than the rest. He went on to say that, the Government are required to ensure that all changes that take place are proportionate. Changes will be implemented after secondary legislation and following full discussion and consultation with all necessary stakeholders. This amendment does not attempt to prescribe a fixed period before the clauses in question come into force. It simply asks that guidance is produced before they come into force. I beg to move.