Commons Sense

House of Commons · Ministers' Questions

Creditors Contacting Customers in Debt: FCA

Tuesday 19 December 2023 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Jessica Morden asked the Minister about recent discussions with the Financial Conduct Authority on how creditors contact customers in debt.
  • The Minister stated that the Government and the FCA will continue to work closely to ensure consumer protections are fit for purpose, including through reform of the Consumer Credit Act 1974.
  • The Minister highlighted ongoing work to address economic abuse, acknowledging the previous efforts of the former Financial Secretary.

Topics (select to filter)

Questions & Answers

Q1 Jessica Morden Lab Newport East
Employment
Context

Discussions on how creditors contact customers who are in debt, focusing on consumer protections and the impact of these interactions.

Question

What recent discussions he has had with the Financial Conduct Authority on how creditors contact customers in debt. The Government and the FCA will continue to work closely to ensure that consumer protections are fit for purpose, including through our upcoming reform of the Consumer Credit Act 1974.

Answer from Bim Afolami

I was pleased to speak at the launch of the Money and Mental Health Policy Institute's report on this subject last week, alongside the FCA. The Government and the FCA will continue to work closely to ensure that consumer protections are fit for purpose, including through our upcoming reform of the Consumer Credit Act 1974.

Partly answered

Not addressed: Did not provide specific details about recent discussions with the FCA on creditor communications.

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Q2 Jessica Morden Lab Newport East
Justice & Courts Employment Benefits & Welfare
Context

A constituent who was a victim of domestic abuse had her ex-husband fraudulently take out a loan in her name, resulting in constant harassment from creditors while she attempted to clear the debt. The question references a report by the Money and Mental Health Policy Institute.

Question

A constituent who was a victim of domestic abuse and whose ex-husband fraudulently took out a loan in her name was constantly harassed by creditors as she tried to clear the debt, and, according to a recent report by the organisation that the Minister mentioned, that is an experience shared by others. Will Ministers discuss with the FCA imposing legal limits on arrears communications in cases such as this, as other countries have done?

Answer from Bim Afolami

Let me say two things. First, I pay tribute to the former Financial Secretary, now the Health Secretary—my right hon. Friend the Member for Louth and Horncastle (Victoria Atkins)—who did a great deal of work in relation to economic abuse. I am committed to continuing that work with the Treasury to ensure that we limit the circumstances in which the incidents described by the hon. Lady can occur. As for the broader question of what the regulator does in such cases, we have put a record level of funding, to the tune of some £93 million, into working with regulators on debt advice.

Partly answered

Not addressed: Did not commit to discussing legal limits on creditor communications for domestic abuse victims with the FCA.

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