View more on these topics

Mandelson proposes consumer advocate to resolve group disputes

First Secretary of State for Business Lord Mandelson has proposed a new consumer advocate should be established to handle collective disputes relating to consumer credit agreements

The proposal comes in a white paper published today called A Better Deal for Consumers and suggests that the advocate should be able to take group disputes by consumers against a business to court.

It says: “We will address systematic unfairness to borrowers so that the victims of unfair treatment obtain proper redress.

“We will consult on whether the proposed consumer advocate should have powers to address unfairness in consumer credit agreements, including the possibility of challenging unfair relationships through the courts on behalf of consumers.”

Financial Ombudsman Service outgoing chief ombudsman Walter Merricks has previously said that finding a solution to the problem of how to deal with collective disputes would help to reduce the FOS’ workload.

In the FOS annual report for the last financial year Merricks said: “A solution to the problem would reduce the volatility of the ombudsman service’s workload, adjust unrealistic expectations of what we can be expected to deliver, and ease tensions between the financial services industry, its regulator and its ombudsman.

“Above all, it would be a real step towards re-establishing the confidence of consumers in financial services.”

Recommended

1

Nick Kelly

Sesame Network & Sesame Direct managing director Nick Kelly says that building businesses gives him a buzz: “I think it does give entrepreneurs a buzz to turn a profit and create and build something.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com