HC Deb 19 July 1974 vol 877 cc862-4

(1) The Director, on an application made by a credit reference agency, may direct that this section shall apply to the agency if he is satisfied—

  1. (a) that compliance with section 159 in the case of consumers who carry on a business would adversely affect the service provided to its customers by the agency, and
  2. (b) that, having regard to the methods employed by the agency and to any other relevant factors, it is probable that consumers carrying on a business would not be prejudiced by the making of the direction.

(2) Where an agency to which this section applies receives a request, particulars and a fee under section 159(1) from a consumer who carries on a business, and section 159(3) does not apply, the agency, instead of complying with section 159, may elect to deal with the matter under the following subsections.

(3) Instead of giving the consumer a copy of the file, the agency shall within the prescribed period give notice to the consumer that it is proceeding under this section, and by notice give the consumer such information included in or based on entries in the file as the Director may direct, together with a statement in the prescribed form of the consumer's rights under subsection (4) and (5).

(4) If within 28 days after receiving the information given him under subsection (3), or such longer period as the Director may allow, the consumer—

  1. (a) gives notice to the Director that he is dissatisfied with the information, and
  2. (b) satisfies the Director that he has taken such steps in relation to the agency as may be reasonable with a vie wto removing the cause of his dissatisfaction, and
  3. (c) pays the Director the specified fee,
the Director may direct the agency to give the Director a copy of the file, and the Director may disclose to the consumer such of the information on the file as the Director thinks fit.

(5) Section 160 applies with any necessary modifications to information given to the consumer under this section as it applies to information given under section 159.

(6) If an agency making an election under subsection (2) fails to comply with subsection (3) or (4) it commits an offence—[Mr. Alan Williams.]

Brought up, and read the First time.

Mr. Williams

I beg to move, that the clause be read a Second time.

Mr. Speaker

With this clause we may also discuss Government Amendment No. 25.

Mr. Williams

The clause attempts to meet points which were made in Committee by the Opposition and which were contained in submissions at various stages from the credit reference agencies. The intention is not to give complete exemptions but to provide alternative procedure for the agencies to follow when they have requests for information from business consumers. The clause will in part meet the requirements sought. We do not feel we can go as far as providing outright exemption, but it will enable the director to give a direction to provide information based on entries in the files instead of providing actual copies of the files. In the event of the customer or the complainant being dissatisfied with the information provided by the agency, he may go to the director himself and the director can obtain a copy of the file from the agency and decide how much information it is in the consumer's interest should be disclosed to him.

This is a reasonable compromise to meet a legitimate problem arising in relation to sources of information for the agency.

Mr. Paul Channon (Southend, West)

We are grateful to the Government for the steps they have taken to bring forward the clause and it is certainly an advance on the position in the Bill on Second Reading. We are grateful for the compromise. It seems most reasonable.

Question put and agreed to.

Clause read a Second time and added to the Bill.

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