Speeches by Grady.

“4. What discussions he has had with Cabinet colleagues on the potential impact of the industrial strategy on Scotland.”

“I do not want to appear grumpy on a lovely Tuesday morning, but the question I asked is whether 79% of customers in financial difficulty paying monthly is consistent with the consumer duty. That is, gently, the question that I am asking, Mr Hargreaves.”

“In summary, Mr Ward, Lloyds does not charge a difference for monthly and annual payments. You are not finding this commercially painful, and you think that this is a good way of complying with consumer duty.”

“Finally, what about you, Mr Storah?”

“So you do not cancel the policy immediately. You go and have a chat with the customer.”

“Are you happy that 79% of customers in financial difficulty paying monthly and paying more is consistent with the consumer duty? Is that something that you are content about?”

“Mr Hargreaves, we have an alternative view of the world there, where you strip out complexity and cost, and consumers, including my hard-pressed constituents, pay less. Is that something that your business has looked at?”

“You say that it is about 7.5%. The FCA says that the average is about 20% to 30%.”

“How do you find the credit default rate on the monthly payments? Do a significant number of people miss the monthly payments?”

“It would be helpful if you could follow up in writing as to whether the operation of this, where 79% of customers in financial difficulty pay monthly, is consistent with the consumer duty and whether your processes identify that. We will miss out Mr Ward and move on to Mr Hargreaves. Are you content that that outcome i…”

“Is that outcome consistent with the consumer duty?”

“No, not at all. You have covered it very well, Mr Glen. My constituency is one of the poorest in the United Kingdom. I share that with Dame Meg. According to the FCA, 79% of consumers in financial difficulty pay monthly insurance premia. Are these higher charges for that cohort of customers consistent with your consume…”

“Mr Glen has covered double-dipping, which was covered in the FT article.”

“These significantly increased charges for paying monthly have caused quite a lot of surprise on the part of people. Are you sure that you are right about that, Mr Hargreaves?”

“Picking up on Dame Siobhan’s point, the FT reported earlier this year on Admiral’s and Aviva’s online information pages for customers with criteria that could push up the cost of insurance. Paying monthly is clearly one of these factors. It reported that Admiral’s and Aviva’s website information pages list the criteria…”

“Have you carried out any analysis of your customers to see whether they understand that paying monthly is more expensive?”

“Leaving aside the percentage of your overall earnings, you are in a similar boat to the others, in that this does not make you a huge amount of money and no more than the annual route.”

“Mr Walker, what is your position on this?”

“Are you in a similar position to Mr Storah, in that you would say that you make very little money on the financing of these arrangements?”

“Mr Hargreaves, are you confident that your motor finance charges are reasonable?”