§ Mr. DrewTo ask the Chancellor of the Exchequer if he will investigate the role of collections units of the commercial banks, with particular reference to their policies towards pensioners and those soon to become pensioners. [10636]
§ Ruth KellyThe Banking Code sets standards of banking practice for banks and building societies when they are dealing with all personal customers, including pensioners. The Chancellor set up the independent Banking Services Consumer Codes Review Group last year. As part of its work the group examined how banks treat individuals in financial difficulties. The group reported in May 2001 and recommended revisions to the Code to ensure consumers in financial difficulty are dealt with appropriately. The financial services industry is already taking forward work to revise this part of the Code.
Debt collecting is also a licensable activity under the Consumer Credit Act 1974. The licensing system is administered by the Director General of Fair Trading who has the power to revoke a licence if he believes that a business is not fit to engage in the activities covered by it. In reaching his decision, he will take account of any business practices which appear to him to be deceitful or oppressive, or otherwise unfair or improper.