Legislative Reform (Consumer Credit) Order 2008

My Lords, I thank both noble Lords for their contributions. I made my debut yesterday when the adrenalin was flowing faster and my nerves much tighter than they are tonight—the audience was much larger. I am very appreciative of the kindness and tolerance of the whole House, particularly of the Front Benches of both the Conservative and Liberal Democrat Parties. I am also delighted because the points that have been made are ones that I can respond to positively. It is the case that unlike some pieces of legislation, this one has been heavily consulted on and enjoys broad support not only in Parliament but also across industry, and therefore I can offer the assurances sought by both speakers. I turn first to the points made by the noble Baroness, Lady Wilcox. On the question of whether there will be additional burdens, I can assure her that there are no additional costs to business associated with these proposals. The proposal to exempt buy-to-let lending from the regulations simply maintains the status quo, while the definition of and proposals on statements ensure that the costs to business are kept to a minimum. There has also been considerable consultation within industry about how to minimise the costs to itself by issuing these statements. The only point I would slightly disagree with is that this is a matter of deregulation. The Government do not believe that it is a question of deregulation at all; these are corrective measures designed to achieve what the original policy intention sought to provide in each case. However, in doing so, the provisions will ensure that the Consumer Credit Act 1974 does not place unnecessary or unintended burdens on business as a consequence of the ambiguities of the previous legislation, so in that sense I am able to offer the assurance that there should be no additional costs. On the noble Baroness’s second question about what will happen to people who are in breach, the 1974 Act provides under the exemptions that there can still be challenges to agreements in the courts on the grounds that the relationship between the creditor and the debtor is unfair. In addition, the debtor can complain to the Office of Fair Trading which can take action under the requirements of the creditor’s licence by, for example, imposing penalties or, if necessary, the licence can be revoked. Turning to the points made by the noble Lord, Lord Razzall, again I do not believe that there is a great deal between us. Having read the statement, I agree that these are highly technical matters, and while they may relieve the adrenalin they probably enhance the desire to go to sleep during the making of the statement. Noble Lords in this House, of course, are more likely to listen and always to make pertinent points, but I hope that we do not have any areas of major disagreement. On that basis, I hope that I have met the points that have been made and I commend the order. On Question, Motion agreed to.