§ 4. Mr. RHYS DAVIESasked the Secretary of State for the Home Department if he will appoint a small committee to report on the effectiveness or otherwise of the Moneylenders Act in checking the abuses of this business?
§ The UNDER-SECRETARY of STATE for the HOME DEPARTMENT (Mr. Douglas Hacking)No information has come to my notice to suggest that any useful purpose would be served by an inquiry of the kind indicated. It ought to be generally known that the Moneylenders Act, 1927, provides that where it is found that the interest charged exceeds the rate of 48 per cent. per annum, the Court shall, unless the contrary is proved, presume that the interest charged is excessive and that the transaction is harsh and unconscionable.
§ Mr. DAVIESIs the hon. Gentleman aware that in the very nature of the case the borrower cannot very well take the 2718 lender into court, and is he aware that some moneylenders, because of that fact, are treating with sheer contempt this piece of legislation? If I provide the Home Office with evidence, will they be good enough to keep a watchful eye on these unconscionable transactions?
§ Mr. HACKINGCertainly we will, but the fact is that if the borrower is asked to pay more than 48 per cent., and if he refuses to pay more than 48 per cent., then the moneylender can sue him, and, if the borrower can prove that it is a harsh transaction, he will win his case.
§ Mr. DAVIESIt may be taken for granted, therefore, that the process of the law can be put into operation by the lender and that he must take the consequences?
§ Mr. HACKINGNot necessarily. I was pointing out a method by which a borrower need not take action, but simply refuse to pay.
§ 6. Mr. T. GRIFFITHSasked the Home Secretary if he is aware that many firms of moneylenders transferred their business to Ireland on the passing of the Moneylenders Act; and whether any amendment of the law is proposed to deal with their activities?
§ Mr. HACKINGI believe that the position is substantially as indicated in the first part of the question, but I do not know how legislation in this country could deal with the activities of persons who are in another jurisdiction.
§ Mr. GRIFFITHSIs the Under-Secretary aware that this money is advanced from Ireland and the lenders prosecute our people in this country and wreck their homes? Is it not possible for the Home Office to intervene in cases of that kind?
§ Mr. HACKINGWe cannot intervene in the jurisdiction of another country, and that is the difficulty.
§ Mr. DAVIESIs it not possible to come to some arrangement with the Irish Free State and Ulster, if that is the case, so as to prevent these people from treating with contempt the laws that we pass, by operating their business from Ireland?
§ Mr. HACKINGOf course, that is another question. I was asked whether an amendment of our law is proposed to 2719 deal with these activities, and that is the question I have answered. The other question will receive consideration.
§ 7. Mr. GRIFFITHSasked the Home Secretary if he will consider amending the Moneylenders Act with a view to making it an offence to publish the names of plaintiffs in actions for relief against alleged unconscionable rates of interest charged by moneylenders, having regard to the fact that the fear of publicity is the chief deterrent from taking action in court?
§ Mr. HACKINGI have no evidence before me to suggest that such a course is necessary or desirable.
§ Mr. GRIFFITHSI have sufficient evidence here. I have shoals of letters. Will the hon. Gentleman look into the question further?
§ Mr. HACKINGI shall be very glad if the hon. Member will let me see some of those letters.
§ Mr. GRIFFITHSShoals of letters, showing that homes have been wrecked and wrecked.