§ 9. Mr. Stewardasked the President of the Board of Trade if he is aware that extortionate rates of interest are being charged by some firms on hire purchase transactions since controls were lifted in July; and what safeguards exist under his revised regulations to prevent the seizure of goods when the purchaser fails to pay the instalments.
§ Mr. P. ThorneycroftI have seen allegations that extortionate rates of interest are being charged by some traders. The Hire Purchase Orders revoked in July did not control interest rates. The Hire Purchase Acts provide that no agreement covered by the Acts is enforceable unless the attention of the hirer has been drawn to the cash price of the goods in question before any agreement is signed, and the owner cannot recover possession of the goods once a third of the hire purchase price has been paid without obtaining a court order.