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Compensation Bill [HL]

I greatly welcome the Minister’s positive response, but I want to press her on one or two points. In a later debate, we will be dealing with the concern relating to endowment claims farmers, so perhaps I may reserve my comments on that until them. I welcome the commitment that the Minister made on her wish to consult immediately and she specified Clause 11(3). It would be helpful to reflect on the timing of that, although I know that one cannot anticipate the proceedings in another place. A clear message would be sent to everyone operating in this sector if we were able to obtain a commitment on when this year the Minister hopes some of the statutory regulation will begin to bite. Secondly, there is undoubtedly a need for immediate action in a number of key areas. Several of us have raised the key issue of the transparency of the relationship between a claimant and the claims management company. It would be right that, whatever the transaction, the individual should be open with the claimant about the exact cost, whether loans are being spoken about and whether insurance is referred to. The vulnerable person has a right to know exactly what is being done. I declare an interest as the immediate former chairman of the Association of Independent Financial Advisers, who are regulated by Financial Services Authority. It is necessary, in the first discussion with the individual you are seeking to advise, to set out clearly and exactly the menu of charges. As I understand it, that does not apply because no advice is being given on financial products, but advice is being given on how to claim. I do not know the extent to which we can hope to persuade the Minister, but certain basic principles should appear in the Bill which will come into effect immediately, and this is one of those. I want to ensure that when selling claims management services, there should be a requirement on that organisation or person to ensure that whatever happens, the individual vulnerable person knows what sort of contract he is entering into and what the obligations and eventual cost will be. The whole ethos of ““no win, no fee”” gives one impression, but the actuality is very different, as the noble and learned Lord the Lord Chancellor has pointed out on several occasions. Perhaps I may press the noble Baroness further on those two points.