Financial Services Bill

I agree entirely, and we already have a provision to enable that to happen. My hon. Friend said that one building society requires customers to save with it before getting a mortgage there. When I had my first mortgage, more years ago than I care to admit to, that was the norm. People were expected to be a customer of a building society before getting a mortgage from it, which encouraged a way of saving that we seem to have lost in many areas of our society. I support the sentiment behind the new clause, but I do not believe we need it. New clause 12 calls for a review of prepayment schemes, including an analysis of whether customers should be preferential creditors in the event of insolvency. The Farepak issue, and the tragedy of its customers, is emblazoned on our minds. Victims of other financial schemes such as Equitable Life still write to me virtually every week, but the new clause relates particularly to prepayment. Many structural issues contributed to Farepak's demise and they need to be addressed. Many unsecured creditors suffer when such a company collapses. I am attracted to the idea of giving prepayment scheme customers a form of secured creditor status, as the hon. Member for North Ayrshire and Arran (Katy Clark) suggests. The Minister has advised that such a measure is not appropriate within the remit of the Bill, because a prepayment company is not a financial services company, but perhaps he could advise us on an appropriate route for looking at the proposal in a little more depth. Amendment 40 is on the total cost of credit. Members on both sides of the House have a great deal of sympathy with it, because it would be an attractive way of controlling the enormous amounts of interest that are being charged. I do not want to go into all payday lending issues—I was reminded the other day that payday lenders constitute only 0.6% of the credit market, even if it is a hugely important part of that market—but the hon. Member for Walthamstow (Stella Creasy), who has spoken on the matter at some length, has pointed out that the market affects some of the most vulnerable people. The Minister has been kind enough to tell us that the report, which is eagerly and anxiously awaited by hon. Members, will come out in the summer. We look forward to the report, and to moving ahead as quickly as possible after it is published.