High-Cost Credit and Debt Management

Lord Davies of Oldham Excerpts

Monday 10th October 2016 Lords Chamber

[Lord Young of Cookham]

If the calls come from overseas, obviously the response that we can take in this country is limited. But if they are calling on behalf of companies based in this country, we can take action because a high-cost credit or debt management company that takes information from a telephone company based overseas has a responsibility to make sure that that overseas company acted in accordance with the code in this country. So we can get at them through the companies based here.

[Lord Davies of Oldham (Lab)]

My Lords, how soon does the Minister expect that the change to the FCA will produce action? This problem has been with us and with large numbers of our fellow citizens for a very long time and the Government are saying, “We need a code”. We know exactly what these companies are doing wrong. It is effective identification and then punishment that are required.

[Lord Young of Cookham]

The FCA has brought right to the front of the queue the process of authorising the firms that the noble Lord referred to. It is going through that process as we speak and hopes to complete it relatively soon, depending on progress. As I said, if those firms do not meet the high standards set by the FCA, they will not be allowed to continue trading.