UK Parliament / Open data

Consumer Credit Bill

Debate on bills on Thursday, 9 June 2005, in the House of Commons, led by Gerry Sutcliffe. The answering member was Charles Hendry.
Consumer Credit Bill. Second reading debate. Agreed to on question. Programme motion on proceedings in Committee, Report and Third reading agreed to on question (formal). Money resolution agreed to on question (formal). Ways and means resolution agreed to on question (formal).

About these Parliamentary proceedings

Reference

434 c1405-88 

Session

2005-06

Department

Department of Trade and Industry

Legislative stage

Second reading

Procedure

Programme motions
Money resolutions
Ways and means resolutions

Chamber / Committee

House of Commons chamber

Related items

Consumer Credit Bill. Explanatory Notes Bill 2-EN also published.
Wednesday, 18 May 2005
Bills
House of Commons

Proceeding contributions

James Duddridge | 434 c1458-9 (Link to this contribution) Absolutely. My hon. Friend is entirely right. To be frank, people in Southend laugh at that suggesti...
James Duddridge | 434 c1456-8 (Link to this contribution) Thank you, Mr. Deputy Speaker, for this great opportunity to speak in the debate. I congratulate my ...

Show all contributions (127)
James Brokenshire | 434 c1467-70 (Link to this contribution) I am grateful for the opportunity to offer my first contribution to the House in this important deba...
David Gauke | 434 c1463-7 (Link to this contribution) Thank you, Mr. Deputy Speaker, for allowing me the opportunity to make my maiden speech. First, may ...
Greg Clark | 434 c1440-3 (Link to this contribution) Thank you, Mr. Deputy Speaker. ““Do well, doubt not”” is advice that any maiden speaker in the Chamb...
Maria Miller | 434 c1447-50 (Link to this contribution) Thank you, Mr. Deputy Speaker, for giving me the opportunity to make my maiden speech. I congratulat...
Laurence Robertson | 434 c1474-8 (Link to this contribution) I apologise to the Minister, and to you, Madam Deputy Speaker, for missing his speech. I wrote to th...
Laurence Robertson | 434 c1478-9 (Link to this contribution) I entirely agree with the hon. Gentleman, and I think that most would do so. As with most legislatio...
Andrew Love | 434 c1478 (Link to this contribution) I am not nearly as sanguine as the hon. Gentleman in relation to mortgaging and remortgaging when le...
Gerry Sutcliffe | 434 c1484 (Link to this contribution) With the leave of the House, I wish to respond to what has been an excellent debate. Ministers often...
Charles Hendry | 434 c1481-4 (Link to this contribution) That has always been the case; my allies are always on the Labour Benches. What we have heard durin...
Gerry Sutcliffe | 434 c1484-5 (Link to this contribution) I remarked earlier to my hon. Friend, who is acting as my Parliamentary Private Secretary, that the ...
Gerry Sutcliffe | 434 c1485-6 (Link to this contribution) The House will have the opportunity to consider the Bill in Committee—I am sure that the Whips will ...
Norman Lamb | 434 c1485 (Link to this contribution) The Minister talks about momentum, so will he give us some indication of the time scale for implemen...
Gerry Sutcliffe | 434 c1486 (Link to this contribution) Again, that has to be seen in the context of what the Government are trying to achieve across the pi...
Richard Bacon | 434 c1486 (Link to this contribution) On the unfairness test, does the Minister accept the point made by the right hon. Member for Leeds, ...
Gerry Sutcliffe | 434 c1487 (Link to this contribution) Hon. Members who have worked with me know that I am prepared to consider all aspects of the problem....
Gerry Sutcliffe | 434 c1461 (Link to this contribution) I am interested in what the hon. Gentleman is saying about the South African experience. Our worry i...
Mark Tami | 434 c1453 (Link to this contribution) That is a fair point. We must encourage people to put money into credit unions. People often use cre...
Adrian Bailey | 434 c1453-4 (Link to this contribution) I could not agree more. I shall certainly join the credit union that has just started up in my local...
Adam Price | 434 c1462 (Link to this contribution) I have some difficultly with that argument, although I am sure that that will happen to some extent....
Norman Lamb | 434 c1462 (Link to this contribution) That very point is being investigated by the OFT and referred to the Competition Commission.
Adam Price | 434 c1463 (Link to this contribution) It is certainly important to consider that issue because of the possibility of a perverse incentive ...
Adam Price | 434 c1461 (Link to this contribution) At this stage it is only a proposal, so there has been no experience in the South African market. I ...
Norman Lamb | 434 c1434-5 (Link to this contribution) I am referring to a study commissioned by the DTI, to which the right hon. Gentleman may object. [In...
John Battle | 434 c1435 (Link to this contribution) I accept the importance of those factors. Interest rates are capped in Germany, France, Holland and ...
John Battle | 434 c1434 (Link to this contribution) Will the hon. Gentleman tell me to what evidence he is referring?
Norman Lamb | 434 c1435 (Link to this contribution) I disagree with those bodies on this particular point, but I take note of their opinions. I do not k...
Adam Price | 434 c1435 (Link to this contribution) : Does the hon. Gentleman think that the Church of England and the Local Government Association, bot...
Norman Lamb | 434 c1430-1 (Link to this contribution) I agree with much of what the right hon. Member for Leeds, West (John Battle) said. On the question ...
David Drew | 434 c1431 (Link to this contribution) : I have made this point before, but I should like to reinforce it. We could provide genuine access ...
Russell Brown | 434 c1437-8 (Link to this contribution) As we have heard this afternoon, it is an absolute tragedy that in modern-day society we continue to...
John Battle | 434 c1438-9 (Link to this contribution) I was trying to make the point that people do not find it easy to talk about their financial arrange...
Michael Jabez Foster | 434 c1443-7 (Link to this contribution) I begin by congratulating the hon. Member for Tunbridge Wells (Greg Clark) on the competence of his ...
Adrian Bailey | 434 c1450-3 (Link to this contribution) Before I address some remarks to the Bill I would like to compliment the two Conservative Members wh...
Norman Lamb | 434 c1435 (Link to this contribution) I am grateful to the right hon. Gentleman for that intervention. I would never support such interest...
Laurence Robertson | 434 c1435-6 (Link to this contribution) I am grateful to the hon. Gentleman for giving way and apologise to the Minister for missing his spe...
Norman Lamb | 434 c1436-7 (Link to this contribution) I am grateful to the hon. Gentleman for that intervention. The unfairness test, perhaps combined wit...
Gerry Sutcliffe | 434 c1425 (Link to this contribution) I do not want to interrupt the thrust of my right hon. Friend’s remarks and I agree that we need to ...
John Battle | 434 c1425 (Link to this contribution) I accept and welcome that. In fact, my hon. Friend underplayed his and the Government’s work on fund...
Austin Mitchell | 434 c1428 (Link to this contribution) By expanding my hon. Friend’s point, I think that the argument will be elucidated. There is a furthe...
John Battle | 434 c1426-8 (Link to this contribution) I completely agree with my hon. Friend. As a practical suggestion, we could build into the Bill a re...
Austin Mitchell | 434 c1426 (Link to this contribution) I strongly agree with what my right hon. Friend is saying. The poor and the less well off face a maj...
John Battle | 434 c1425-6 (Link to this contribution) I completely agree with my hon. Friend. To be fair to the Minister, in arguments on capping interest...
John Battle | 434 c1421 (Link to this contribution) I share the hon. Gentleman’s concern about the lack of clarity, but I come to it from a completely d...
Gerry Sutcliffe | 434 c1412 (Link to this contribution) I hear what my hon. Friend says, and I do not entirely disagree with him. It is one of those issues ...
Gerry Sutcliffe | 434 c1412-3 (Link to this contribution) I am confident that we will not have to wait 30 years, because consumer credit and the use of consum...
Gerry Sutcliffe | 434 c1413-4 (Link to this contribution) I welcome my hon. Friend’s contribution. Under the regulations that were introduced in October last ...
Gerry Sutcliffe | 434 c1414 (Link to this contribution) I shall answer the point before I give way again. The financial inclusion fund that was announced i...
Chris Bryant | 434 c1416 (Link to this contribution) When we considered the previous Bill in Committee in the last Parliament there was much debate about...
Charles Hendry | 434 c1417 (Link to this contribution) I hope that we can address that important matter in Committee, although we must be clear about wheth...
Charles Hendry | 434 c1417 (Link to this contribution) I understand what the Minister is saying, but we feel that there is a tendency to be complacent. We ...
John Battle | 434 c1417 (Link to this contribution) I, too, served on the Committee that considered the previous Bill and, as the hon. Gentleman probabl...
Gerry Sutcliffe | 434 c1405 (Link to this contribution) I beg to move, That the Bill be now read a Second time. Before I begin my speech, let me welcome th...
Gerry Sutcliffe | 434 c1406 (Link to this contribution) I understand why my hon. Friend raises this issue, but there is not enough time during a Second Read...
David Clelland | 434 c1405 (Link to this contribution) I congratulate my hon. Friend on introducing this measure, which I know is very close to his heart; ...
David Chaytor | 434 c1406 (Link to this contribution) I note my hon. Friend’s description of the Government’s position on interest rate caps, but what exa...
Andrew Miller | 434 c1408 (Link to this contribution) I want to reflect on the exchange that my hon. Friend had with my right hon. Friend the Member for W...
Gerry Sutcliffe | 434 c1407-8 (Link to this contribution) I realise that various Members want to intervene, but I want to make a little more progress first. ...
Gerry Sutcliffe | 434 c1407 (Link to this contribution) I look forward to debating transparency, the unfairness credit test and associated issues with the h...
Norman Lamb | 434 c1407 (Link to this contribution) I endorse entirely the comments of the right hon. Member for West Dunbartonshire (Mr. McFall), who c...
Gerry Sutcliffe | 434 c1407 (Link to this contribution) My right hon. Friend chaired the Treasury Select Committee and I am grateful to him for the work tha...
Gerry Sutcliffe | 434 c1411 (Link to this contribution) In anticipation of other challenges on that issue, hon. Members will know of the Pepper v. Hart judg...
Norman Lamb | 434 c1411 (Link to this contribution) : The Minister has said that he will not seek to define unfairness. Will the Department issue any gu...
Iain Wright | 434 c1409 (Link to this contribution) My hon. Friend is being most generous in giving way. I wish to mention the principle according to wh...
Stephen Hepburn | 434 c1409 (Link to this contribution) I thank my hon. Friend for his patience in giving way. All hon. Members know of his dedication to th...
Lord Vaizey of Didcot | 434 c1470-4 (Link to this contribution) I am not sure what the etiquette is for a Member who has so recently been a maiden himself—I broke m...
Charles Hendry | 434 c1480-1 (Link to this contribution) With the leave of the House, Madam Deputy Speaker, I should be grateful to respond to some of the co...
Gordon Banks | 434 c1479-80 (Link to this contribution) At the risk of repeating what others may have said already, let me say that I welcome the Bill. The ...
Andrew Love | 434 c1486 (Link to this contribution) I am convinced by the evidence, especially that produced by Bristol university, on the negative impa...
Adam Price | 434 c1459-61 (Link to this contribution) May I also pay tribute to the hon. Members for Tunbridge Wells (Greg Clark), for Basingstoke (Mrs. M...
Richard Bacon | 434 c1455-6 (Link to this contribution) I am pleased to have the chance briefly to contribute to the debate. I congratulate my hon. Friend ...
Mark Tami | 434 c1454 (Link to this contribution) My hon. Friend has been very generous in giving way. Does he agree that problems can arise not only ...
Adrian Bailey | 434 c1454 (Link to this contribution) As always, my hon. Friend makes a valuable point. Again, the issue must be dealt with through the re...
Gerry Sutcliffe | 434 c1463 (Link to this contribution) The hon. Gentleman may remember that I said that, if any other evidence was produced in addition to ...
Mike Penning | 434 c1461-2 (Link to this contribution) I used to live in Germany, and the problem with capping is that it pushes the problem underground; s...
John Battle | 434 c1435 (Link to this contribution) It costs £700 to borrow £1,000 from a doorstep lender, which is so far over the odds that it is immo...
Norman Lamb | 434 c1435 (Link to this contribution) From a sedentary position, the Minister says, ““It is true.”” We must debate the matter further in C...
John Battle | 434 c1429-30 (Link to this contribution) I agree, as would the majority of lenders in the business. They want to drive the worst lenders out ...
Russell Brown | 434 c1439-40 (Link to this contribution) My right hon. Friend is right. Something needs to be done through education, especially for our youn...
David Drew | 434 c1425 (Link to this contribution) I know that the Government feel very strongly about this matter. I am sorry that I missed the introd...
Russell Brown | 434 c1429 (Link to this contribution) My hon. Friend is quite right. Credit rating is vital in business, and must be in place before one b...
Norman Lamb | 434 c1429 (Link to this contribution) Speaking as a lawyer, may I ask whether the hon. Gentleman agrees that it is better for Parliament t...
John Battle | 434 c1428-9 (Link to this contribution) I share my hon. Friend’s concerns. With respect to other right hon. and hon. Members, I am not a law...
Michael Jabez Foster | 434 c1419 (Link to this contribution) Is it not the case that very high interest rates usually reflect the fact that the loan should not h...
Austin Mitchell | 434 c1420 (Link to this contribution) The hon. Gentleman will be well aware that most of the argument on whether terms were unfair concent...
Charles Hendry | 434 c1419-20 (Link to this contribution) It is also the case that the APR is not necessarily a good way to make that judgment. If I borrowed ...
John Battle | 434 c1424-5 (Link to this contribution) I welcome the early reintroduction of the Consumer Credit Bill in this new Parliament. It is a good ...
Charles Hendry | 434 c1421-4 (Link to this contribution) I agree with the right hon. Gentleman that for many people, particularly those on low incomes, the p...
Adam Price | 434 c1412 (Link to this contribution) Is not the fact that it has taken 30 years to introduce new consumer credit legislation a good argum...
Anne Snelgrove | 434 c1413 (Link to this contribution) Has my hon. Friend considered outlawing the unfair order of payment on credit cards? That is a probl...
Sally Keeble | 434 c1414 (Link to this contribution) My hon. Friend will recall that in the previous discussions, we raised issues about the money and ad...
Gerry Sutcliffe | 434 c1414 (Link to this contribution) I said at the outset that the Bill is part of a series of measures that the Government are introduci...
Stephen Hepburn | 434 c1414 (Link to this contribution) Has the Minister thought about making representations to the Chancellor of the Exchequer for a windf...
Charles Hendry | 434 c1416 (Link to this contribution) I shall come on to that point. I am grateful to the hon. Gentleman for his intervention and hope tha...
Gerry Sutcliffe | 434 c1417 (Link to this contribution) I want to try to keep the consensus going, but I remind the hon. Gentleman that 80 per cent. of the ...
Charles Hendry | 434 c1415-6 (Link to this contribution) I thank the Minister for the kind and courteous words with which he opened the debate and, in turn, ...
Mike Weir | 434 c1406 (Link to this contribution) I understand what the Minister is saying about interest rate caps, but does he not accept that anoth...
Lord McFall of Alcluith | 434 c1407 (Link to this contribution) I congratulate the Government and particularly the Minister on reintroducing this Bill so quickly. B...
Gerry Sutcliffe | 434 c1406-7 (Link to this contribution) The hon. Gentleman will know that last October, we introduced regulations concerning a single way of...
Gerry Sutcliffe | 434 c1405-6 (Link to this contribution) I am grateful to my hon. Friend for that intervention; he has a good track record in assisting const...
Chris Bryant | 434 c1406 (Link to this contribution) I am very grateful to the Minister for giving way; I am glad to note that he is giving a speech simi...
Gerry Sutcliffe | 434 c1406 (Link to this contribution) I give way to my hon. Friend the Member for Rhondda (Chris Bryant).
Gerry Sutcliffe | 434 c1406 (Link to this contribution) I am grateful to my hon. Friend for that intervention. He, too, has a good understanding of this iss...
Gerry Sutcliffe | 434 c1408-9 (Link to this contribution) My hon. Friend, who has an interest in these matters, shows that there are opportunities for discuss...
Lord Dodds of Duncairn | 434 c1408 (Link to this contribution) The Minister is being very generous in giving way. I, too, welcome the reintroduction of this very i...
Gerry Sutcliffe | 434 c1408 (Link to this contribution) We will watch that case with interest, on which I cannot comment as it is going to appeal, as my hon...
Graham Allen | 434 c1408 (Link to this contribution) I apologise for missing the first few seconds of my hon. Friend’s speech, and I congratulate him on ...
Gerry Sutcliffe | 434 c1412 (Link to this contribution) I hope that that will not be the case and that the alternative dispute resolution process will opera...
John Battle | 434 c1411-2 (Link to this contribution) I also offer my hon. Friend a word of congratulation. We have struggled to get this Bill; we got far...
Gerry Sutcliffe | 434 c1410-1 (Link to this contribution) I shall address that issue in a few moments, so I hope that my hon. Friend will bear with me. Consu...
Sally Keeble | 434 c1410 (Link to this contribution) As my hon. Friend knows, I have been concerned about unfair relationships, both from the consumer’s ...
Gerry Sutcliffe | 434 c1409-10 (Link to this contribution) Well, it looks as though there will be competition for the places on the Standing Committee. Clearly...
Charles Hendry | 434 c1418-9 (Link to this contribution) The Minister made the same point. I am saying that when such debt is affordable, it is fine, but peo...
Michael Jabez Foster | 434 c1412 (Link to this contribution) My hon. Friend obviously does not want to make the case law today even though many of us wish that h...
Adam Price | 434 c1463 (Link to this contribution) I shall review my staffing budget to find out whether it is possible to look into that, but there ce...
John Battle | 434 c1429 (Link to this contribution) I understand that the hon. Gentleman is on side, although he is a lawyer. The focus of our discussio...
Gerry Sutcliffe | 434 c1414-5 (Link to this contribution) My hon. Friend raises an interesting point. Credit unions are vital, we are supporting them and we w...
Gerry Sutcliffe | 434 c1408 (Link to this contribution) It will in some respects but not in every respect. However, the work of the Financial Services Autho...
Gerry Sutcliffe | 434 c1409 (Link to this contribution) Again, if my hon. Friend can contain himself, in a few minutes’ time, I shall mention the OFT’s powe...
Norman Lamb | 434 c1431-4 (Link to this contribution) Yes. The network is under enormous pressure and there are signs that it is dying, so it should be a ...
Charles Hendry | 434 c1420 (Link to this contribution) The problem is that with the lack of clarity, lenders will withdraw from lending to certain categori...
Adrian Bailey | 434 c1417-8 (Link to this contribution) Surely the hon. Gentleman recognises that about 80 per cent. of household debt is mortgage debt. As ...

Subjects

Disclosure of information
Consumers
Appeals
Debts
Cheques
Credit agreements
Credit
Credit cards
Licensing
Instalment credit
Interest rates
Low incomes
Powers of entry
Protection
Loans
Office of Fair Trading
Money lenders
Regulation
Unfair practices
Personal loans
Financial Ombudsman Service
Mediation

Legislation

Consumer Credit Bill 2005-06

Link

View this Parliamentary proceeding on www.publications.parliament.uk
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