Financial Guidance and Claims Bill [Lords] — House of Commons, 2018-01-22
Topic: Mixed Topics
Pauline Elizabeth Latham (Conservative, Centre-right): It is good to see you back in your place, Mr Deputy Speaker I welcome the Second Reading of the Bill. It is important that people have access to the right financial help and advice, which is essential to stop financial problems escalating. That is particularly pertinent when people are ill. When someone is diagnosed with a disease such as cancer—especially when the diagnosis is terminal—the financial implications are often the last thing on their mind. However, it can undoubtedly result in great difficulties and cause someone additional stress when they need normality, stability, dignity by being able to work and the ability to pay their bills Banks and building societies have an unrivalled ability to reach and support people affected by the financial impact of cancer and other health conditions and disabilities, particularly regarding mortgages and other significant financial commitments. However, recent research from Macmillan shows that more needs to be done to improve the support available and ensure that helping people with cancer and other vulnerable customers is at the heart of banks’ culture Today, I would like to reflect on the experiences of one of my constituents, Jacci Woodcock, who was diagnosed with terminal cancer a number of years ago. Despite a desire to stay in work, she was treated very badly by her former employer, SMD Textiles in Preston, Lancashire, and was pushed out of her job soon after her diagnosis, even though she had no time off during her chemo and her sales figures never suffered. Subsequently, Jacci has campaigned tirelessly for the Dying to Work campaign, which she began. It is a cross-party campaign for additional employment protection for terminally ill workers who are able to and want to work. I implore all colleagues in the House to support the campaign and encourage businesses in their constituencies to follow suit. Many very large businesses have already done so, and I would like to see employment law strengthened to help people like Jacci After leaving her job as a result of pressure exerted by her employer following her terminal diagnosis, Jacci could no longer afford her mortgage repayments. She was therefore faced with a further concern that her home would be repossessed—the home where she wishes to stay until she sadly dies. Jacci had a joint mortgage with her ex-partner, Mr Andrew Bradley, which they held with Santander. After Jacci’s diagnosis, Mr Bradley left Jacci and their home because he could not cope and, from October 2015, stopped paying the mortgage. He told Jacci that he thought she would be dead and wanted his equity from the house. An official offer was presented to Mr Bradley to continue to pay the mortgage until her death, and then he could recover all the payments from her estate. Thankfully, in Jacci’s case, Santander dealt with the situation extremely well and a mutually agreeable conclusion was reached. When the situation was flagged up to the bank, it agreed to discontinue all collections and litigation activity relating to the mortgage. Jacci was therefore not required to make any more payments on the mortgage. It remained at the standard variable rate, repayable through equity from her home upon her death I was impressed by how understanding Santander was in handling Jacci’s case. It is a very large company and one might think that it would not be interested in one person’s problems. The process, however, was not straightforward, and the delay in reaching a satisfactory agreement was traumatic for Jacci when she was in a very vulnerable place. Red tape in such circumstances should be limited. Financial institutions should have a moral and legal duty to care. Policies need to be consistent in dealing with customers with a terminal diagnosis Macmillan’s research shows that people do not know what to expect from their bank. Just 11% of people with cancer tell their bank about their diagnosis. This needs to change so that banks and building societies can help their customers when they need it most. The introduction of a formal responsibility for banks and building societies towards terminally ill customers would give people the confidence to disclose their diagnosis. Customers should know they can trust their bank to act in their best interests during a time of distress. I hope that the Minister can give us some words of encouragement and that the Government will press organisations such as banks and building societies to be much more sympathetic towards people such as Jacci.