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1676539

registered interest
date	08/12/2023
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Credit
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, if he will make an assessment of the implications for his policies of the (a) repayment terms and (b) enforcement action borrowers are subject to when in arrears with buy-now-pay-later products.
tabling member constituency	Linlithgow and East Falkirk
tabling member printed	Martyn Day
uin	5951
answer	answer is ministerial correction date of answer 18/12/2023 answer text <p>The Financial Conduct Authority’s (FCA) rules require firms offering regulated credit products to offer forbearance to customers who are in arrears with their repayments. Firms can meet these requirements by suspending, reducing, waiving, or cancelling any further interest or charges on credit agreements and allowing customers to defer payment of arrears or make token payments for a reasonable period of time.</p><p> </p><p>The FCA is also in the process of strengthening its framework for firms to provide better support to customers facing payment difficulties. It recently consulted on plans to incorporate its Tailored Support Guidance into its Handbook. This guidance sets out the FCA’s expectations of firms when supporting borrowers in financial difficulty, including providing tailored forbearance.</p><p> </p><p>While Buy-Now, Pay-Later (BNPL) agreements are unregulated, when a BNPL firm passes a debt to a debt collection agency, the debt collection agency must be authorised and regulated by the FCA. It must also comply with the FCA’s rules, including those on the treatment of customers in financial difficulty outlined above.</p> answering member constituency Hitchin and Harpenden answering member printed Bim Afolami grouped question UIN 6056 question first answered 18/12/2023 17:21:49 answering member 4639 label Biography information for Bim Afolami
tabling member	4488 label Biography information for Martyn Day

1676540

registered interest
date	08/12/2023
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Credit
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, if he will make an assessment of the implications for his policies of different practices relating to the (a) provision of forbearance and (b) prioritisation of payments on essential bills in the (i) regulated and (ii) buy-now-pay-later sector.
tabling member constituency	Linlithgow and East Falkirk
tabling member printed	Martyn Day
uin	6056
answer	answer is ministerial correction date of answer 18/12/2023 answer text <p>The Financial Conduct Authority’s (FCA) rules require firms offering regulated credit products to offer forbearance to customers who are in arrears with their repayments. Firms can meet these requirements by suspending, reducing, waiving, or cancelling any further interest or charges on credit agreements and allowing customers to defer payment of arrears or make token payments for a reasonable period of time.</p><p> </p><p>The FCA is also in the process of strengthening its framework for firms to provide better support to customers facing payment difficulties. It recently consulted on plans to incorporate its Tailored Support Guidance into its Handbook. This guidance sets out the FCA’s expectations of firms when supporting borrowers in financial difficulty, including providing tailored forbearance.</p><p> </p><p>While Buy-Now, Pay-Later (BNPL) agreements are unregulated, when a BNPL firm passes a debt to a debt collection agency, the debt collection agency must be authorised and regulated by the FCA. It must also comply with the FCA’s rules, including those on the treatment of customers in financial difficulty outlined above.</p> answering member constituency Hitchin and Harpenden answering member printed Bim Afolami grouped question UIN 5951 question first answered 18/12/2023 17:21:49 answering member 4639 label Biography information for Bim Afolami
tabling member	4488 label Biography information for Martyn Day

1676384

registered interest
date	07/12/2023
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Credit: Debts
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential impact of increases in the number of adults using buy now pay later products on levels of unmanageable debt.
tabling member constituency	Linlithgow and East Falkirk
tabling member printed	Martyn Day
uin	5814
answer	answer is ministerial correction date of answer 13/12/2023 answer text <p>HM Treasury regularly monitors the consumer credit market as part of its normal process of policy development.</p><p> </p><p>The department draws on the research of various stakeholders, including consumer groups and the wider financial services industry, to inform policy development.</p> answering member constituency Hitchin and Harpenden answering member printed Bim Afolami question first answered 13/12/2023 12:42:28 answering member 4639 label Biography information for Bim Afolami
tabling member	4488 label Biography information for Martyn Day

1668910

registered interest
date	09/11/2023
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Workplace Pensions: Advisory Services
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what recent assessment he has made of the affordability of independent financial advice for members of pension schemes with safeguarded benefits who are required to take advice under section 48 of the Pension Schemes Act 2015.
tabling member constituency	Linlithgow and East Falkirk
tabling member printed	Martyn Day
uin	1197
answer	answer is ministerial correction date of answer 16/11/2023 answer text <p>The Pensions Schemes Act 2015 requires that members of pension schemes with safeguarded benefits take independent financial advice before accessing their pension pot flexibly, where the total value of the member’s benefits exceeds £30,000. These pensions offer a high level of security and guarantees that should not be relinquished without consumers being supported to make an informed choice about the risks.</p><p> </p><p>In 2019, the Financial Conduct Authority (FCA) found that consumers who took advice from firms that charged on a non-contingent basis typically paid £2,500 - £3,500 for advice.</p><p> </p><p>There are a variety of resources available to help consumers shop around for an advice firm that best meets their needs, including MoneyHelper’s Retirement Adviser Directory.</p> answering member constituency Hitchin and Harpenden answering member printed Bim Afolami question first answered 16/11/2023 17:17:33 answering member 4639 label Biography information for Bim Afolami
tabling member	4488 label Biography information for Martyn Day

1668915

registered interest
date	09/11/2023
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Credit: Regulation
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, if he will make it his policy to introduce interim measures to protect buy now pay later borrowers.
tabling member constituency	Linlithgow and East Falkirk
tabling member printed	Martyn Day
uin	1200
answer	answer is ministerial correction date of answer 16/11/2023 answer text <p>Buy-Now Pay-Later (BNPL) is an interest-free product which gives consumers a time-limited means of spreading payments for their purchases. When used responsibly and provided affordably it can be a helpful way for consumers to manage their finances and make purchases.</p><p> </p><p>Many consumers are attracted to BNPL because of its interest-free nature, which the Government considers makes it inherently lower risk than most other types of credit. The FCA’s most recent Financial Lives survey found that 46% of people of who had used BNPL in the past 12 months chose it because it was interest-free. In addition, the survey found that 88% of users found it easy to keep track of their repayments.</p><p> </p><p>As such, BNPL represents a popular alternative to traditional, interest-bearing forms of credit like credit cards and personal loans. For some financially vulnerable consumers it may also provide an alternative to high-cost and illegal lending. Further data from the FCA shows that around 14 million adults used BNPL in the six months to January 2023 and that the average outstanding BNPL balance is low at £236.</p><p> </p><p>The Government’s consultation on proposed draft legislation to bring Buy-Now Pay-Later into regulation closed in April. Since then the Government has been carefully considering stakeholder feedback. The Government will publish a response to the consultation once it is finalised in due course.</p><p> </p><p>In the meantime, BNPL users already benefit from broader consumer protection legislation, including on advertising and unfair contract terms. The FCA also has existing powers to take action against firms, which it used as recently as Tuesday 31 October to secure changes to firms' potentially unfair and unclear contract terms. Some BNPL firms have also introduced a credit ‘opt-out’ function for their customers.</p> answering member constituency Hitchin and Harpenden answering member printed Bim Afolami question first answered 16/11/2023 17:12:48 answering member 4639 label Biography information for Bim Afolami
tabling member	4488 label Biography information for Martyn Day

1668916

registered interest
date	09/11/2023
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Credit Reference Agencies
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what estimate he has made of the number and proportion of buy now pay later providers who voluntarily report their customers’ (a) borrowing and (b) repayment records to credit reference agencies.
tabling member constituency	Linlithgow and East Falkirk
tabling member printed	Martyn Day
uin	1201
answer	answer is ministerial correction date of answer 16/11/2023 answer text <p>HM Treasury regularly monitors the consumer credit market as part of its normal process of policy development.</p><p> </p><p>Buy-Now Pay-Later (BNPL) is an interest-free product which gives consumers a time-limited means of spreading payments for their purchases. When used responsibly and provided affordably it can be a helpful way for consumers to manage their finances and make purchases.</p><p> </p><p>Many consumers are attracted to BNPL because of its interest-free nature, which the Government considers makes it inherently lower risk than most other types of credit. The FCA’s most recent Financial Lives survey found that 46% of people of who had used BNPL in the past 12 months chose it because it was interest-free. In addition, the survey found that 88% of users found it easy to keep track of their repayments.</p><p> </p><p>As such, BNPL represents a popular alternative to traditional, interest-bearing forms of credit like credit cards and personal loans. For some financially vulnerable consumers it may also provide an alternative to high-cost and illegal lending. Further data from the FCA shows that around 14 million adults used BNPL in the six months to January 2023 and that the average outstanding BNPL balance is low at £236.</p><p> </p><p>While the department does not hold precise information on the number and proportion of BNPL firms reporting borrowing and repayment records for their customers’ agreements to credit reference agencies, it understands that several of the UK’s major BNPL firms have reporting arrangements in place with at least one credit reference agency.</p> answering member constituency Hitchin and Harpenden answering member printed Bim Afolami question first answered 16/11/2023 17:15:29 answering member 4639 label Biography information for Bim Afolami
tabling member	4488 label Biography information for Martyn Day