HC Deb 01 July 1927 vol 208 cc815-6
Commodore KING

I beg to move, in page 9, line 15, at the end, to insert the words and any interest so charged shall not be reckoned for the purposes of this Act as part of the interest charged in respect of the loan. This is with regard to the payment of interest in regard to amounts already due for principal or interest. It is laid down that interest on such overdue amounts may be charged at simple interest. Under Clause 14, where the definition of "interest" occurs, it would obviously not be fair that this simple interest on the over-due amount should be reckoned as interest for the purpose of ascertaining the permanent rate of interest. It would not be fair to reckon this simple interest for the purpose of reckoning the rate of interest on the loan itself.

Amendment agreed to.