§ Mr. McCrindleasked the Secretary of State for Prices and Consumer Protection (1) if he or the Director General of the Office of Fair Trading have received any representations from insurance or mortgage brokers on the practice of building societies of requiring a share of insurance commissions as a condition of providing mortgage finance;
(2) if he is satisfied that the undertaking given by the Building Societies Association not to require a sharing of insurance commissions as a condition of providing mortgage finance is being honoured; whether he or the Director General of Fair Trading plan further intervention; and if he will make a statement.
§ Mr. John FraserAs far as the Director General of Fair Trading is aware, the agreement he reached with the Building Societies Association in 1976 is being honoured by all member societies. The Director General has made it clear that he would deprecate the practice of making the sharing of insurance commissions a condition of providing mortgage finance. I understand that he has recently received a number of complaints from insurance and mortgage brokers among others, which criticise building society practice in this area in general terms. However, no specific allegations have been made. Accordingly, he is writing to a number of the larger societies to ask for their comments and will consider any future action in the light of their replies and any further information he may receive. If the hon. Member knows of any specific instances of the practice he mentions, perhaps he will inform the Director General of the details.