To ask the Secretary of State for Justice whether the Government has assessed the potential effect of new forms of regulation of legal services on consumer protection.

To ask the Secretary of State for Justice whether the Government has assessed the potential effect of new forms of regulation of legal services on consumer protection.

Westminster Hall adjournment debate on Farepak.

Westminster Hall adjournment debate on Farepak.

I thank the hon. Gentleman for that intervention. He goes precisely to the crux of the issue: self-regulation is simply not acceptable. We need statutory guidance. We must compel companies to protect their customers' money. Can the Minister assure us that the Government will do that? If not, can he...

I thank the hon. Gentleman for that intervention. He goes precisely to the crux of the issue: self-regulation is simply not acceptable. We need statutory guidance. We must compel companies to protect their customers' money. Can the Minister assure us that the Government will do that? If not, can he...

When I have made some progress, if I have not satisfactorily covered that matter I give a commitment that either I or the Minister responsible will respond properly and as far as we can within the legal constraints that I have set out. I am aware of the hon. Members...

When I have made some progress, if I have not satisfactorily covered that matter I give a commitment that either I or the Minister responsible will respond properly and as far as we can within the legal constraints that I have set out. I am aware of the hon. Members...

My constituent, Jean McLardy, has given me a Farepak customer payment card that belonged to her mother, who has passed away. It looks identical to those of credit union savings schemes, and it is clear that the people who put money away every week thought it was in a savings...

My constituent, Jean McLardy, has given me a Farepak customer payment card that belonged to her mother, who has passed away. It looks identical to those of credit union savings schemes, and it is clear that the people who put money away every week thought it was in a savings...

I thank my hon. Friend for her intervention. She made her incredibly valuable point very well. She has done sterling work on the Farepak issue over the years, and I commend her for that. My Farepak savers in Alway will probably receive a total of about £315. I acknowledge the...

I thank my hon. Friend for her intervention. She made her incredibly valuable point very well. She has done sterling work on the Farepak issue over the years, and I commend her for that. My Farepak savers in Alway will probably receive a total of about £315. I acknowledge the...

Although I am happy to have secured this debate, I am extremely unhappy that I felt compelled to apply for it. I had hoped that justice would have been done by now, and that Farepak customers and agents would have received at least some of their money back. However, five...

Although I am happy to have secured this debate, I am extremely unhappy that I felt compelled to apply for it. I had hoped that justice would have been done by now, and that Farepak customers and agents would have received at least some of their money back. However, five...

Is it worth reminding people that the company knew when it took money from people that it was not able to provide the goods and services required, and that the people it defrauded could least afford to lose that money?

Is it worth reminding people that the company knew when it took money from people that it was not able to provide the goods and services required, and that the people it defrauded could least afford to lose that money?

I thank my hon. Friend for his intervention. He makes an incredibly valid point. The people involved had modest incomes, and could least afford to lose that money. They ended up paying twice for Christmas, or borrowing money. The whole matter was a scandal, and we are still no clearer...

I thank my hon. Friend for his intervention. He makes an incredibly valid point. The people involved had modest incomes, and could least afford to lose that money. They ended up paying twice for Christmas, or borrowing money. The whole matter was a scandal, and we are still no clearer...

I thank my hon. Friend for her intervention. I agree that the matter is downright wrong, and I hope that the Government will act. I would like the Minister to say whether he believes that the insolvency process is fit for purpose in dealing with the aftermath of cases such...

I thank my hon. Friend for her intervention. I agree that the matter is downright wrong, and I hope that the Government will act. I would like the Minister to say whether he believes that the insolvency process is fit for purpose in dealing with the aftermath of cases such...

I am pleased that the hon. Lady secured this debate and that she raised the point about transparency, because there are real concerns about creditors' representation, and precisely what is going on with BDO. There is a dearth of information, and it is not good enough to rely on civil...

I am pleased that the hon. Lady secured this debate and that she raised the point about transparency, because there are real concerns about creditors' representation, and precisely what is going on with BDO. There is a dearth of information, and it is not good enough to rely on civil...

I thank my hon. Friend for his intervention, which was well made. Many victims have called for Sir Clive Thompson to have his knighthood removed if he loses the case, and perhaps the Minister will also address that point. A survey posted on Twitter and the Farepak victims committee Facebook...

I thank my hon. Friend for his intervention, which was well made. Many victims have called for Sir Clive Thompson to have his knighthood removed if he loses the case, and perhaps the Minister will also address that point. A survey posted on Twitter and the Farepak victims committee Facebook...

I am grateful to my hon. Friend for securing this important debate. Does she agree that some of the practices that she describes are at best ethically questionable and, looking at them more strategically in terms of how victims have been affected, downright wrong?

I am grateful to my hon. Friend for securing this important debate. Does she agree that some of the practices that she describes are at best ethically questionable and, looking at them more strategically in terms of how victims have been affected, downright wrong?

Let us be honest. If someone broke into a house and stole such an amount of money, they would find themselves in prison. They would be jailed, never mind paying compensation, or justice. They would find themselves in prison, and that is where they should be.

Let us be honest. If someone broke into a house and stole such an amount of money, they would find themselves in prison. They would be jailed, never mind paying compensation, or justice. They would find themselves in prison, and that is where they should be.

My hon. Friend is exactly right. There are a whole range of prepayment schemes. She mentioned prepayment for funerals, which is a huge issue that I shall address later. Farepak customers were on modest incomes, and in October 2006 their Christmas was destroyed. All their carefully saved money disappeared overnight....

My hon. Friend is exactly right. There are a whole range of prepayment schemes. She mentioned prepayment for funerals, which is a huge issue that I shall address later. Farepak customers were on modest incomes, and in October 2006 their Christmas was destroyed. All their carefully saved money disappeared overnight....

Does my hon. Friend agree that one of the problems highlighted is that the victims have been treated as unsecured creditors, so they are right at the bottom of the pile? The Office of Fair Trading report, which was published in December 2006 after Farepak collapsed, highlighted the problems with...

Does my hon. Friend agree that one of the problems highlighted is that the victims have been treated as unsecured creditors, so they are right at the bottom of the pile? The Office of Fair Trading report, which was published in December 2006 after Farepak collapsed, highlighted the problems with...

The hon. Gentleman is exactly right. Although my constituent has been incredibly tenacious, from her point of view it has been very difficult to get any information out of the administrators, apart from messages posted on the website. The average amount of time taken for a liquidation process to finish...

The hon. Gentleman is exactly right. Although my constituent has been incredibly tenacious, from her point of view it has been very difficult to get any information out of the administrators, apart from messages posted on the website. The average amount of time taken for a liquidation process to finish...

The hon. Lady has come to the fundamental point. Five years ago, a loophole was identified. Because of the nature of the business, unbeknown to all the clients and customers who took part in it, it is not in law a financial service. Why is that loophole still there five...

The hon. Lady has come to the fundamental point. Five years ago, a loophole was identified. Because of the nature of the business, unbeknown to all the clients and customers who took part in it, it is not in law a financial service. Why is that loophole still there five...

I commend the hon. Lady for securing the debate. It is important that people are very careful about putting their money in schemes of this kind after the experience of Farepak. Before putting in their money, they should look for firm guarantees such as the banks must now have. Money...

I commend the hon. Lady for securing the debate. It is important that people are very careful about putting their money in schemes of this kind after the experience of Farepak. Before putting in their money, they should look for firm guarantees such as the banks must now have. Money...

I thank the right hon. Gentleman for that intervention. Obviously, that is where the CPA and self-regulation come in. Many of the Farepak victims that I have spoken to saved with friends because they trusted them. We must address the whole issue in the industry. Despite all that has happened...

I thank the right hon. Gentleman for that intervention. Obviously, that is where the CPA and self-regulation come in. Many of the Farepak victims that I have spoken to saved with friends because they trusted them. We must address the whole issue in the industry. Despite all that has happened...