My Lords, Amendment 50 is a very broad, sweeping but probing amendment. It is designed to tease out the Government’s thinking on the position of those consumers who are increasingly being pressured to give up paper bills in favour of a paperless, usually direct debit system of charging. That is one of the two issues most frequently raised regarding consumer protection. Simply put, some people want to be told in advance what the cost of the service is to them. They want to be able to pay in the way that is most convenient to them, including by cheque, and they do not wish to be charged extra for using any aspect of that facility that they do not see as an optional extra.
To give a practical example, I have a bill from BT, which is headed, “How we worked out your bill”. After explaining that there is a charge of £48 for the service, it also explains that you get your phone line at a special rate. It gives a refund of £2 a month, which it says is shown on the bill—it is not shown, but never mind about that. Eventually it comes down to a £56 charge, and it then says “a payment processing fee”. That is the fee charged by BTPS, whoever it may be, for processing your payment. If you are in any doubt as to where you are being steered, on the right-hand side of the bill, in small type, it states, “To avoid future payment processing fees you can set up a direct debit at www.bt.com or call 0800 443311”. That fee is now £6 of £56, which must be doing quite a lot of good for BT’s profit margin.
It goes much wider than just individuals. In my work in the charity sector, one of the most common means—
6.36 pm