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Written question asked by Lord Sharkey (Liberal Democrat) on Monday, 1 September 2014, in the House of Lords. It was due for an answer on Monday, 15 September 2014. It was answered by Lord Deighton (Conservative) on Monday, 13 October 2014 on behalf of the Treasury.

Debts

Question

To ask Her Majesty’s Government, further to the Written Answer by Lord Deighton on 11 August (HL1638), whether they, or the Financial Conduct Authority, have made an assessment of the effect on the market for debt management services of the absence of notification of the existence of free debt management services in cold calling by lead generators on behalf of fee-charging debt management services; and if not whether they plan to instruct the Financial Conduct Authority to make such an assessment.

Answer

The Financial Conduct Authority has put in place binding requirements on fee-charging debt management firms to signpost customers to free independent debt advice at the first point of contact, including when contacted following a referral from a lead generator.

The FCA is monitoring the compliance of debt management firms with

its rules on an ongoing basis via its supervision of such firms and from 1 October 2014, all debt management firms are required to submit to the full scrutiny of the FCA authorisation process which will involve a comprehensive consideration of all aspects of their compliance.

The FCA is also undertaking an in-depth thematic review of the debt management sector to assess the quality of advice, looking at whether firms are recommending appropriate debt solutions, and how incentive structures and the use of lead generators may be affecting consumers.

Secondary information

Type
Written question
Reference
HL1769
Session
2014-15
Related items
BBC Debts.com
Monday, 11 August 2014
Written questions
House of Lords
Grouped for answer
Yes
Subjects
Disclosure of information Debts Advisory services Direct marketing Financial services
Link
View this Written question on www.parliament.uk