House of Commons Amendments

Session 2013 - 14
Internet Publications
Other Bills before Parliament

2125

House of Commons

Tuesday 13 May 2014

Consideration of Bill

Consumer Rights Bill, As Amended

Note

The Amendments have been arranged in accordance with the Consumer Rights

Bill (Programme (No. 2)) Motion to be proposed by Secretary Vince Cable.

New Clauses and new Schedules relating to public services, guidance or

access to data

Independent advocacy: report

Stella Creasy

Stephen Doughty

NC1

To move the following Clause:—

‘(1)
Within three months of Royal Assent of this Act the Secretary of State must

publish a report detailing how—

(a)
better outcomes for consumers of public services; and

(b)
more efficient decision-making processes,


will be ensured.

(2)
A report under subsection (1) will consider—

(a)
how each public service provider will ensure a formalised approach to

ensuring independent advocacy is available for consumers at an early

stage in the decision-making process for the provision of public services;

(b)
the nature of an independent advocate to participate in this process, and

the definition of independence, including how this could be supported by

the conduct of any service provider;

(c)
the effect of a breach in a consumer’s statutory rights as set out by this

Act when a direct commissioning contract is in place;

(d)
what formal status any independent advice provided will have in relation

to decision-making, in particular, in instances where a public service

continues to act contrary to such information and formal legal redress is

sought;

Consideration of Bill: 13 May 2014
2126

Consumer Rights Bill, continued

(e)
the role of the public sector ombudsman services in overseeing any such

approach under paragraph (a);

(f)
how a public service provider will report on their formalised approach

under paragraph (a); and

(g)
how the approach under paragraph (a) would ensure all consumers of

services covered by this Act have access to a licensed alternative redress

mechanism.

(3)
For the purposes of this section a public service is any provided to the consumer

directly by—

(a)
a Government department;

(b)
a local or public authority; or

(c)
a trader acting on behalf of these organisations.

(4)
For the purposes of this section a person shall be a consumer of public services

under a “direct commissioning contract” when they enter any—

(a)
agreement;

(b)
contract;

(c)
consumer notice; or

(d)
proposed contract,


for receiving a service which the person has a direct role in commissioning.’.

Guidance for statutory regulators

Stella Creasy

Stephen Doughty

NC2

To move the following Clause:—

‘(1)
Within three months of Royal Assent of this Act, the Secretary of State shall

publish guidance based on the work of the Implementation Group.

(2)
Guidance published under section (1) shall—

(a)
detail how consumers should be informed of their rights and at what point

this should happen;

(b)
ensure that traders have the information they need regarding their

responsibilities under this Act and other consumer rights legislation;

(c)
define what may be a “reasonable time” for consumers to secure refunds,

repairs or replacement, or repeat performance; and

(d)
specify the sanctions available to enforcement agencies in cases where

the guidance has not been followed.

(3)
Within six months of the publication of guidance under subsection (1), the

Secretary of State shall issue a code of practice in relation to the exercise of any

and all the functions set out in the guidance, subject to the provisions of

subsections (5) to (7).

(4)
Any person exercising such a function must have regard to the code in

determining any general policy or principles by reference to which the person

exercises the function.

(5)
Where the Secretary of State proposes to issue a code of practice under subsection

(3), he shall prepare a draft of the code, and shall lay the draft before Parliament.

Consideration of Bill: 13 May 2014
2127

Consumer Rights Bill, continued

(6)
Where the draft laid before Parliament under subsection (5) is approved by

resolution of each House of Parliament, the Secretary of State shall issue the code.

(7)
A code issued under subsection (6) shall come into force on such date as the

Secretary of State may by order made by statutory instrument appoint.’.

Access to data

Stella Creasy

Stephen Doughty

NC3

To move the following Clause:—

‘Schedule [Access to data] has effect.’.

Guidance based on the work of the implementation group

Tom Greatrex

NC4

To move the following Clause:—

‘(1)
Within three months of Royal Assent of this Act, the Secretary of State shall

publish guidance based on the work of the Implementation Group.

(2)
Guidance published under subsection (1) shall—

(a)
advise on the period that a trader may retain sums paid by the consumer

for services not yet supplied by the trader, where it is the consumer who

dissolves the contract;

(b)
further to paragraph (a), advise on the terms under which traders should

manage the interest on such sums and make provision for the return of

this interest to the consumer; and

(c)
advise on whether it should be permissible to charge for a guarantee

where that guarantee does not offer any undertaking to the consumer

additional to their rights as set out in this Act.’.

Independent consumer advice

Stella Creasy

Stephen Doughty

NC5

To move the following Clause:—

‘Within three months of this Act receiving Royal Assent, the Secretary of State

shall produce guidance setting out requirements for all statutory regulators to

report annually on the provision of independent advice which is free at the point

Consideration of Bill: 13 May 2014
2128

Consumer Rights Bill, continued

of delivery, and to make recommendations on ensuring consumers’ rights are

protected.’.

Powers of the Information Commissioner: nuisance calls

Yvonne Fovargue

NC10

To move the following Clause:—

‘(1)
The Data Protection Act 1998 is amended as follows.

(2)
In section 40 (Enforcement Notices), leave out subsection (2).

(3)
In section 55A (Power of Commissioner to impose monetary penalty), leave out

subsection (1)(b).’.

Stella Creasy

Stephen Doughty

NS1

To move the following Schedule:—

‘Access to data

Information for consumers

1
The Secretary of State shall report to Parliament within six months of Royal

Assent of this Act setting out how consumers will have access to the

information they require in order to make informed assessments of prices,

charges and fees.

Supply of customer data

2
A report under paragraph 1 shall include details of how the Government

intends to—

(a)
make regulations to require all regulated persons to provide customer

data relating to transactions between the regulated person and the

customer, as set out in section 89 (Supply of customer data) of the

Enterprise and Regulatory Reform Act 2013;

(b)
enable third parties to make requests for customer data under section

89(1)(b) of that Act; and

(c)
ensure customer data is provided in a form which enables the customer

or third party to assess whether the price they are paying for a service

is reasonable, which should have regard to section 89(7) of the

Enterprise and Regulatory Reform Act 2013.

Designation of regulated persons and regulatory bodies

3
A report under paragraph 1 shall—

(a)
review which traders, including the activities of any government, or

local or public authority, as defined by section 2 of this Act, shall be

Consideration of Bill: 13 May 2014
2129

Consumer Rights Bill, continued

considered a regulated person under section 89(2) of the Enterprise

and Regulatory Reform Act 2013; and

(b)
identify a relevant regulatory body to undertake the duties set out in

paragraph 4 of this Schedule.

Guidance for regulated persons

4
A report under paragraph 1 shall include details of how the Government

intends to require regulators of services which are provided by regulated

persons, as defined in section 89(2) of the Enterprise and Regulatory Reform

Act 2013, to produce guidance on the implementation of section 89 of that Act.

5
Guidance produced for regulated persons under paragraph 4 shall include—

(a)
how regulated persons should provide customer data;

(b)
details on the ownership of customer data which shall include, but is

not limited to—

(i)
that customer data generated directly, at any point in the

course of a contract, is owned by the customer;

(ii)
that prior to any decision requiring the transmission of data in

a format where the customer can be identified to a third party,

direct consent of the customer as owner of the data must be

secured; and

(iii)
how regulated persons should recognise and publicise that

such data is owned by the customer;

(c)
how customers may consent to their data being shared with third

parties under section 89(1)(b) of the Enterprise and Regulatory

Reform Act 2013;

(d)
specify sanctions for traders who are not able to confirm the consent

of the customer to sharing their data;

(e)
measures to limit the amount that may be charged for any such single

request for data on behalf of multiple customers;

(f)
how regulated persons, who hold data on customers on behalf of any

government, local or public authority, can use this information to

secure social and consumer benefits; and

(g)
how regulated persons, who hold data on customers on behalf of any

government, local or public authority, can contribute to a report under

paragraph 7.

Access to information: public services

6    (1)
The Secretary of State shall report to Parliament within six months of Royal

Assent of this Act on how the Government intends to ensure that all consumers

of public services, who have a direct role in commissioning them, are able to

access information regarding any consumer contract or consumer notices

which may reasonably be understood to apply to them.

      (2)
A report under sub-paragraph (1) shall have particular regard to—

(a)
the access to information that consumers of public services require;

and

(b)
how access to information can ensure greater transparency on the

work of traders.

      (3)
For the purposes of this paragraph, “public services” means the work of any

government, local or public authority or traders offering services on their

behalf.

Consideration of Bill: 13 May 2014
2130

Consumer Rights Bill, continued

Access to information: annual report

7    (1)
The Secretary of State shall produce and submit to Parliament an annual report

setting out an analysis of the cumulative costs and benefits of Government

decisions relating to the rights of consumers and protection of their interests.

      (2)
A report under sub-paragraph (1) shall in particular address the effect on—

(a)
household consumption;

(b)
vulnerable households; and

(c)
any other subjects as the Secretary of State decides.’.

New Clauses and new schedules relating to consumer credit or debt

management

Payday lenders levy

Stella Creasy

Stephen Doughty

NC6

To move the following Clause:—

‘The Secretary of State shall produce an annual report on the level at which a levy

on lenders in the high cost consumer credit market should be set and bring

forward measures to ensure—

(a)
provision of free debt advice for vulnerable consumers; and

(b)
provision of affordable alternative credit through credit unions.’.

Debt management plan regulation

Stella Creasy

Stephen Doughty

NC7

To move the following Clause:—

‘The Financial Conduct Authority shall bring forward recommendations within a

year of the commencement of this Act regarding the practice of directly charging

consumers fees or charges for the provision of debt management plans, including

recommendations on the phasing out of such practices.’.

Consideration of Bill: 13 May 2014
2131

Consumer Rights Bill, continued

Credit broker fees

Yvonne Fovargue

NC9

To move the following Clause:—

‘(1)
The Consumer Credit Act 1974 is amended as follows.

(2)
In section 160A (Credit intermediaries) after subsection (4) insert—

“(4A)
Persons engaged in credit intermediary activity under this section or

credit broking activity under section 145 shall not charge or take any fee

from a debtor in respect of these activities until such time as an

introduction results in the debtor entering into a relevant agreement.”.’.

Practices of rent to own companies

Yvonne Fovargue

NC11

To move the following Clause:—

‘(1)
This section applies to credit agreements and consumer hire agreements taken out

in respect of household goods specified in rules by the Financial Conduct

Authority.

(2)
The rules under subsection (1) shall—

(a)
include a requirement on lenders to include in pre-contractual

information adequate explanations and information allowing prospective

customers to compare both the cash price of goods and the total cost of

the credit agreement to a representative retail price for those goods;

(b)
prohibit lenders from requiring customers to take out insurance sold or

brokered by the lender as a condition of obtaining credit;

(c)
set out specific steps lenders must take before taking action to enforce the

agreement or recover possession of goods; and

(d)
set out the steps lenders should take to check that the agreement is

affordable and suitable for prospective consumers.’.

Consumer credit: bill of sale

Stella Creasy

NC23

To move the following Clause:—

‘(1)
Where a person is a purchaser of goods subject to a bill of sale, made in

connection with a regulated agreement under the Consumer Credit Act 1974, in

good faith and without notice of the bill of sale, title to those goods shall pass to

that person.



© Parliamentary copyright	Revised 13 May 2014