Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Digital, Culture, Media & Sport:
To ask Her Majesty’s Government, in the light of the risk of pension fraud and scams, what are their reasons for not banning cold calling about pensions.
Answered by Lord Ashton of Hyde
We are determined to tackle the scourge of nuisance calls especially those of a fraudulent nature. Our efforts are focused on taking action against companies that are deliberating break the rules, rather than penalising legitimate businesses who comply with the law.
My Department is in conversations with Her Majesty’s Treasury and the Department for Work and Pensions on how best we tackle scams as a result of pensions cold calls.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Digital, Culture, Media & Sport:
To ask Her Majesty’s Government what action they are planning to take to prevent cold calling for pension scams.
Answered by Lord Ashton of Hyde
My Department is in conversations with Her Majesty’s Treasury and the Department for Work and Pensions on how best we tackle nuisance calls and the scams associated with them, which is a priority for the Government.
We are exploring several measures that will help strengthen the Information Commissioner’s enforcement powers against those organisations that continue to breach the direct marketing rules. Specific measures under consideration are; extending the Information Commissioner’s powers of compulsory audit to more of the organisations that generate nuisance calls and exploring the options for enabling the Information Commissioner to hold company directors to account for breaches of the direct marketing rules.
The Government will continue to work closely with the City of London Police (CoLP), the national lead force for fraud, to help local forces and partners deliver protective advice to the public on fraud, including phone scams. CoLP operates Action Fraud, the national reporting centre for fraud and cyber crime, and the National Fraud Intelligence Bureau, to ensure that the public has the information they need to protect themselves from telephone fraud. Action Fraud, for example, places an alert on its website when a serious threat or new type of fraud is identified - which members of the public can sign up to receive by email.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Digital, Culture, Media & Sport:
To ask Her Majesty’s Government why cold calls regarding mortgages can be banned but not cold calls offering free pension reviews or unregulated pension investments.
Answered by Lord Ashton of Hyde
The Financial Conduct Authority (FCA) prohibition on cold calling applies to financial promotion of mortgages by FCA regulated firms. Under the FCA rules, regulated entities (including mortgage providers) are not allowed to engage in real-time financial promotion of mortgages and therefore no legitimate market for telephone promotion and sales exists.
The Government tightened controls on cold calling earlier this year, when amending the Privacy and Electronic Communications Regulations (PECR), making it a requirement for organisations making direct marketing calls to display their Calling Line Identification (CLI). These controls need time to bed in before considering whether further changes, specific to pensions, are appropriate. If there is a case for change, the Government will take the necessary action.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Digital, Culture, Media & Sport:
To ask Her Majesty’s Government what action they are taking to stop cold-callers who try to lure people into pension scams.
Answered by Baroness Shields
The Government takes the threat of pension scams very seriously. We are committed to protecting consumers from such scams, by raising awareness and pursuing scammers when these crimes occur.
The Government has established Project Bloom, a multi-department, multi-agency forum for officials to monitor trends, share intelligence on emerging threats, and help co-ordinate action to tackle scams. Members include the National Crime Agency, police forces, Pension Wise, regulators and key Government departments.
We are also taking forward a range of legislative measures to tackle nuisance calls, which will increase consumer protection and choice by strengthening the Information Commissioner's Office (ICO) ability to take enforcement action against organisations that break the law. Recent actions include a measure in the Digital Economy Bill that will strengthen the ICO's direct marketing guidance by giving it statutory status. We are also exploring proposals to extend the ICO’s powers of compulsory audit to more of the organisations that generate nuisance calls; and the options for enabling the ICO to hold company directors to account for breaches of the direct marketing rules.