§ Mr. DrewTo ask the Chancellor of the Exchequer if he will introduce financial advice bureaux to provide consumer debt advice and counselling. [37473]
§ Ruth KellyGood consumer debt advice and counselling can be vital to individuals with serious financial difficulties. That is why we welcome it being1208W widely available though Citizens Advice Bureaux, National Debtline, other independent advice centres, the Consumer Credit Counselling Service (CCCS) and local authority advice centres, all of which provide free help to those in difficulties. These are already funded by a combination of central and local government, and industry support channelled through the Money Advice Trust and CCCS.
In addition recent reports by the National Association of Citizens Advice Bureaux and the Consumer Policy Institute, as well as proposals from the Financial Services Authority in their Consultation Paper 121, focus attention on the way financial advice is delivered and funded. We are following the debate that has accompanied those initiatives closely.
§ Mr. DrewTo ask the Chancellor of the Exchequer if he will make a statement on the role of the Financial Services Authority in consumer debt advice and counselling. [37474]
§ Ruth KellyThe Financial Services and Markets Act 2001 gives the Financial Services Authority (FSA) specific objectives
to promote public understanding of the financial system, including promoting awareness of the benefits and risks of investments and other financial dealing, and the provision of appropriate information and advice, andto secure the appropriate degree of protection for consumers.In addition the FSA has powers to challenge terms in financial services consumer contracts that are unfair.
In the future a new FSA mortgage regime will regulate advice on the largest debt most people are ever likely to enter into.
The FSA seeks to ensure consumers are better able to make informed choices and achieve fair deals. An understanding of credit and debt and the role they play in financial planning is an essential part of this. To help ordinary consumers understand and use their rights the FSA operates a dedicated consumer website including a section on credit and debt, produces publications dealing, for example, with mortgages and unfair contract terms, and has developed materials to support work in schools. The latter includes material aimed at developing financial capability for pupils aged 14 to 19 that specifically addresses credit and debt.
The FSA does not duplicate the work done by others. Instead it provides links where appropriate to the more detailed specialist information provided by agencies such as the Citizens Advice Bureaux and other local government and voluntary initiatives.
Where the FSA is contacted by people with debt problems it refers them to the appropriate agency such as their local CAB or the National Debtline.