But I can reassure noble Lords that the Bill does not reduce the rights of borrowers. On the contrary, borrowers' rights will be protected through the sale agreement which will require the purchaser to meet the same collection standards as the Student Loans Company, as a minimum. Failure to abide by them could lead to legal action against the purchaser. Variations to these standards by the purchaser will not be allowed without written approval from my right honourable friend the Secretary of State. Any proposed changes by the purchaser would have to comply with the safeguards contained elsewhere in this Bill, and in existing consumer protection legislation in the Consumer Credit, Data Protection and Malicious Communications Acts.
Borrowers have no cause to fear.
The existing deferment terms and lender's ability to deal with borrowers in financial difficulty will remain in place. There should be no need for any borrowers to default on their loan, but if they do they should expect to have legal action taken against them under the new arrangements in the same way as it is taken now. Noble Lords may be concerned that private sector debt purchasers might seek to use the database or loan borrowers for other purposes such as cross selling financial products. I can assure them that the Bill specifically prevents any such data being provided or used for such purposes. The sale of a borrower's loan will not result in a flood of junk mail.