§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what proposals he has for requiring mortgage lenders to offer capital and interest mortgages as well as endowment mortgages and for advising customers that alternative insurance advice should be sought when an endowment mortgage is preferred.
§ Mr. NelsonThe choice of products offered by mortgage lenders is a matter for their commercial judgment. However, my right hon. Friend the President of the Board of Trade proposes to make new quotations regulations under the Consumer Credit Act to improve consumer protection in this area. These include a requirement to ensure that borrowers taking out loans to46W purchase residential property are informed of their rights under the "tying in" provisions of the Courts and Legal Services Act which, when brought into force, will make it an offence to refuse to grant a loan on the grounds that a prospective borrower declines another service, for example life insurance, offered by the lender or his associate.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what proposals he has for requiring mortgage lenders with tied insurance arrangements to display warnings that only one specified company's products are on sale in their branches.
§ Mr. NelsonSIB and LAUTRO published detailed new rules on disclosure and standards of advice in connection with the marketing of life assurance on 22 July. These include requirement relating to prominent display of status in the premises of "tied intermediates", if customers have regular access to them. SIB and LAUTRO have stated that they will not be bringing the new rules into force until after they have been considered by the Director General of Fair Trading.