Clare Haughey – SNP – Rutherglen May 2016. Pic – Andrew Cowan/Scottish Parliament
MSP Clare Haughey challenged Minister Richard Lochhead about meeting with credit unions.
by Bill Heaney
What is the Scottish Government doing in regard to its engagement with credit unions following CMutual withdrawing its family protection plan?
The Minister for Business and Employment, Richard Lochhead, told MSPs today that Ministers and officials are engaging regularly with representatives of Scottish credit unions that are impacted by the withdrawal of the family protection plan, as well as with the Financial Conduct Authority and CMutual.
He added: “We understand that the independent coalition of credit unions has now met with Lucy Rigby, who is Economic Secretary to the Treasury, and formally with the FCA. Due to the FCA’s regulatory independence from Government, we are unable to intervene in regulatory investigation processes.”
SNP’s Clare Haughey, who raised the matter, told the Holyrood parliament: “I have been regularly meeting the independent coalition of credit unions, which has been working tirelessly to support policyholders who have been impacted by the withdrawal of the family protection plan.
“However, we need the FCA and the United Kingdom Treasury to compel CMutual and Maiden Life Försäkrings to discuss mitigating, in the form of financial redress, the harm that is now occurring.
“According to the coalition, around 20 people who were policyholders have died since financial support from the plan was withdrawn, which shows that we need action from the UK authorities as a matter of urgency.
“Will the minister outline any discussions that the Scottish Government has had in that regard with UK Government counterparts or the FCA?”
Richard Lochhead said: “Of course, our thoughts will be with the loved ones of those who have lost their lives.
“I can tell Clare Haughey that I have written again this week to Lucy Rigby to highlight the concerns of some of the Scottish credit unions and to offer to meet her to discuss the issue. In my letter, I set out three issues that require the Treasury’s urgent attention.
“The first is support for families who face funeral costs without adequate cover. The second is a clear determination of whether any kind of misconduct or regulatory breach has occurred in the sale or administration of the policy, including during its closure.
“The third is consideration of any reforms that are needed to improve consumer protection in relation to closed-book and group insurance products. We continue to engage with stakeholders on that issue.”
