§ Mr. Austin MitchellTo ask the Secretary of State for Trade and Industry (1) what plans he has for protecting consumers involved in home annuity schemes for setting down guidelines for these schemes; and if he will make a statement;
(2) what proposals he has for (a) controlling the selling of home income annuity schemes, (b) issuing guidance to consumers considering such schemes and (c) requiring a period of consultation and cooling off before such schemes are finalised;
(3) what proposals he has for requiring special conditions and consumer protection for controls for the roll-up home loan or investments in home loans to pensioners;
(4) what representations he has received about (a) the effects of home income annuity schemes on the elderly, (b) the need for consumer protection in this area and (c) the dangers of schemes where unpaid interest is rolled up and added to the loan; and if he will make a statement.
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§ Mr. ForthMy right hon. Friend has received only one letter about home income schemes and has no plans for legislation on this matter. Consumers are protected by the Financial Services Act 1986 which applies to the investment element in such schemes and by the Consumer Credit Act 1974 which applies to the connected loan.