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Mr. Sutcliffe: The alternative dispute resolution process is due, and it will give vulnerable consumers the opportunity to get out of such agreements. The FOS's decision is binding, so consumers will not even have to go to court to get out of a particular agreement.
Adam Price: Legal advice will still be required as part of that process. We will have to revisit the matter because maximum interest rates have had a positive impact in other countries. I welcome the Minister's statement that we will not have to wait for another 30 years to make such a change because the Government are committed to reviewing the matter. In that spirit, I beg to ask leave to withdraw the motion.
Motion and clause, by leave, withdrawn.
Mr. Sutcliffe: I beg to move amendment No. 1, in page 5, line 31, leave out 'on the day' and insert 'immediately'.
Mr. Deputy Speaker (Sir Michael Lord): With this it will be convenient to discuss the following Government amendments: Nos. 2 to 4, 6 and 7, 9 to 13, 19, 14 to 18 and 20.
Mr. Sutcliffe: These are technical amendments to ensure that the Bill works effectively. They mean that the obligations on business are clear and that consumers are protected.
Amendment agreed to.
3 Mar 2005 : Column 1147
Amendment made: No. 2, in page 5, line 34, leave out first 'on' and insert 'at the end of'.—[Mr. Sutcliffe.]
Amendments made: No. 3, in page 9, line 29, leave out 'on the day' and insert 'immediately'.
No. 4, in page 9, line 31, leave out 'on' and insert 'at the end of'.—[Mr. Sutcliffe.]
Mr. Sutcliffe: I beg to move amendment No. 5, in page 11, line 27, at end insert—
'( ) In section 32(1) of the Sheriff Courts (Scotland) Act 1971 (c. 58) (regulation of civil procedure in sheriff court) after paragraph (l) insert—
"(m) permitting the debtor or hirer in proceedings for—
(i) a time order under section 129 of the Consumer Credit Act 1974 (time orders), or
(ii) variation or revocation, under section 130(6) of that Act (variation and revocation of time orders), of a time order made under section 129, to be represented by a person who is neither an advocate nor a solicitor."
( ) In section 32(2B) of the Solicitors (Scotland) Act 1980 (c. 46) (offence for unqualified persons to prepare certain documents)—
(a) after "represent" insert "—(a)";
(b) after "cause" insert—
"(b) a debtor or hirer in proceedings for—
(i) a time order under section 129 of the Consumer Credit Act 1974 (time orders); or
(ii) variation or revocation, under section 130(6) of that Act (variation and revocation of time orders), of a time order made under section 129".'.
I promised to introduce this Government amendment in response to the concerns raised by several. Members on Second Reading about Scottish time order applications. The amendment enables Scottish courts to allow debtors or hirers to be represented by a person who is not a solicitor or advocate in proceedings covering time order applications or the revocation or variation of time order applications. That will put Scottish consumers on an equal footing with those in the rest of the UK, enabling them to be represented by, for example, a money adviser or Citizens Advice Scotland employee. I am happy to address the matter to ensure that the situation in Scotland is equivalent to that in the rest of the UK.
Malcolm Bruce
: I thank the Minister for moving the amendment. There was clearly an anomaly, in that, for historical reasons, the situations in Scotland and England differed. The Consumer Council has made representations to that effect. Clearly, accessibility will be made easier and cheaper than it was under the old unnecessary requirement. People can still use a solicitor or other professional if they wish, but they will be able to make their own choice about how to make representations, and that is very welcome. I am grateful to the Government for bringing Scotland into line.
3 Mar 2005 : Column 1148
Mr. Mark Lazarowicz (Edinburgh, North and Leith) (Lab/Co-op): Given the subject matter of the amendment, I should declare an interest as a member of the Faculty of Advocates, even though it goes against that interest. Like the hon. Member for Gordon (Malcolm Bruce), I welcome the amendment and the fact that the Government have recognised the concern raised by several Members from Scotland when the issue was raised early during the Bill's process. Citizens Advice Scotland has taken the lead in pushing for the change and is pleased that the amendment has been tabled at this stage. I spoke to CAS representatives earlier this week and they were delighted.
On the face of it, the amendment is a small one, but it will have important implications, together with the extra funding that the Government and the Scottish Executive are giving to the Money Advice Trust and organisations that work in the area. We should now see a bigger take-up of the opportunities given to those who represent debtors who find themselves in difficulties. The amendment is worth while and I am glad that the Government have tabled it. I commend the Minister for moving so quickly.
Amendment agreed to.
Amendments made: No. 6, in page 12, line, leave out 'on the day' and insert 'immediately'.
No. 7, in page 12, line 12, leave out first 'on' and insert 'at the end of'.—[Mr. Sutcliffe.]
Malcolm Bruce: I beg to move amendment No. 21, in page 13, line 19, at end insert—
'(2A) For the purposes of this section, an agreement shall be automatically unfair if the court determines that—
(a) at the time of making the agreement the debtor could not reasonably have been expected to maintain the level of payments required under the agreement; or
(b) the lender made inadequate attempts to determine the financial circumstances of the borrower at the time of entering into an agreement.'.
Mr. Deputy Speaker: With this it will be convenient to discuss the following: Government amendment No. 8.
Amendment No. 22, in page 63, line 2 [Schedule 3], leave out paragraphs 14 and 15 and insert—
'14 The court shall not make an order under section 140B of the 1974 Act in connection with a credit agreement made before the commencement of section 20 of this Act.
15 The repeal by this Act of sections 137 to 140 of the 1974 Act shall not affect the court's power to reopen an existing agreement under those sections.'.
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