PensionsApr 25 2018

Bill to stop nuisance calls enters Parliament

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Bill to stop nuisance calls enters Parliament

A bill designed to ban nuisance calls is to be heard in Parliament in July, following a successful 10 minute motion brought yesterday (24 April).

The bill was introduced by Stephen Kerr, Conservative MP for Stirling, and was voted on unanimously by MPs present at the House of Commons hearing, after being backed by more than 100 MPs.

It calls for three measures to be introduced: making penalties more robust to widen the way they can be applied; making directors of companies personally liable for fines for nuisance calls; and tighten up on the definition of a nuisance call. 

The bill also wants to place a general responsibility on unsolicited callers to ensure the numbers they are calling are not registered with the Telephone Preference Service (TPS). 

This would mean when phone numbers are sold it would be the responsibility of both the purchaser and seller to establish whether a number is a TPS number and both parties could be fined if they had not performed due diligence on the numbers traded.

Mr Kerr told the House: "Receiving unsolicited nuisance calls has become an infuriating but inevitable part of our life. They are intrusive, seldom of any use and often made with the sole intention of ripping people off.

"In a residential setting this kind of disruption is never welcome. In business unsolicited calls play havoc with the daily rhythm of business routine and the productivity of offices."

He said he had heard of business lines being blocked for customers and suppliers and of helplines being clogged up preventing people who need help from getting through.

He said: "It is the equivalent of setting up a trader's stall outside a hospital A&E entrance which blocks ambulances from getting in. 

"We wouldn't allow it in the physical world so why should we tolerate it in telephony."

Mr Kerr said there were estimates some 70 million nuisance calls are made every year, with some people and firms receiving several a day.

The Scottish government estimated last month the economic harm UK-wide from such calls amounts to £3bn, he said.

He said there were laws in place to prevent fraud but the line was blurry as to when they are broken.

Mr Kerr said: "While people purporting to be from a company to gain access to your computer are breaking the law, the ones who phone to ask questions to build a profile of how vulnerable a person is may not be."

Mr Kerr's bill comes as the government's Financial Guidance and Claims Bill was given a further hearing in the House.

The reading saw Jack Dromey, shadow pensions minister, raise a number of amendments to the bill, designed to take away power from unregulated introducers.

The Labour MP wants to ban the use of information obtained from cold calling and ensure the strongest possible sanctions are put on those who break the ban.

The move would mean firms who provide financial services and are covered by the Financial Conduct Authority will be banned from using information provided by introducers.

Mr Dromey's proposals follow latest amendments to the bill which could see pension cold-calling banned by June.

The amendment tabled by HM Treasury on 5 March stated the regulations underpinning the ban on pension-related cold calls should be made by the secretary of state before the end of June.

If the power is not exercised by June, the secretary of state for Work & Pensions, currently MP for Tatton Esther McVey, must explain to parliament why the rules have not been created.

carmen.reichman@ft.com