- Regulating Christmas and similar savings schemes, which the Commission believes pose a particular risk to vulnerable consumers.
- Introducing a general power for Government to require prepayment protection in sectors which pose a particular risk to consumers.
- Giving consumers more information about obtaining a refund through their debit or credit card issuer.
- Making a limited change to the insolvency hierarchy, to give a preference to the most vulnerable category of prepaying consumers (their claims would rank below preferential claims from employees and above those of floating charge holders).
- Making changes to the rules on when consumers acquire ownership of goods.
Thursday, 14 July 2016
The Law Commission for England and Wales today published its report and recommendations on the law concerning consumer prepayments on retailer insolvency: see here (pdf). The report contains the following five key recommendations (and sets out a number of options for more fundamental reform, should the Government wish to adopt them):