Compensation Bill [HL]

moved Amendment No. 29:"Page 2, line 6, leave out from second ““claim”” to ““whether”” in line 7 and insert ““in negligence, breach of statutory duty or contract for which the remedy or relief will be compensation, restitution or repayment,””" The noble Lord said: It may be convenient if I speak also to Amendment No. 30. Amendment No. 29 sharpens the definition. We want to ensure that the definition of ““claim”” extends to complaints about financial products because we did not think it was clear that it did so. The difficulties may be that such claims are hybrid as between negligence and breach of contract because many claims will lie in negligent misrepresentation. The intention of Amendment No. 29 is simply to flag our concern to ensure that the wording covers what it is intended to cover. I want to concentrate in particular on Amendment No. 30, which is a simple request for clarification. The phrase ““in pursuance of a voluntary undertaking”” has no obvious meaning in this context. I looked through the Explanatory Notes and could not find clarification. The amendment would leave out subsection (2) (iii) on page 2. It is possible that it is intended to cover claims against the various ombudsman schemes—the Financial Ombudsman Service and the Housing Ombudsman Service—particularly those where organisations not strictly covered by the statutory scheme have agreed to be bound by it. The Financial Ombudsman Service was set up by the Financial Services and Markets Act 2000. It states in its aims and values that it is neither a consumer champion nor a trade body: it is completely independent and deals with all disputes fairly and impartially. No one should need special expertise or professional help to use the service and bring a complaint to it. That should be part and parcel of the service provided. The Housing Ombudsman Service, set up under the Housing Act 1996, is for all residents in homes managed by a provider of housing services registered with the Housing Ombudsman Service. All social landlords, housing associations, registered in England are included, as are certain private landlords and management agents. From the consumers’ point of view, those services can be used without the need for professional help. Most importantly, they are free, fair and independent. I would like clarification from the Minister about the extent to which she has been able to consult the various ombudsmen about the proposal or about the problem with claims management companies generally. It would be interesting if the Minister would share with us the extent to which consultations have taken place, are taking place or will take place with the various ombudsmen. It is important that they see their place and their independent role in no way being affected by this important legislation. In later debates, I shall return to specific instances but that is the context in which I beg to move the amendment.