HC Deb 04 December 1956 vol 561 c1032
24. Mrs. Mann

asked the President of the Board of Trade if he is aware that his credit restriction policy, whereby deposits on hire-purchase specified items have been increased, is being defeated by moneylenders who are prepared to advance these deposits on instalments; and if he will take steps to end this practice.

Mr. Erroll

We have no evidence that moneylending as a means to facilitate the payment of hire-purchase deposits is taking place on any significant scale, but investigations are being made into certain transactions where loans are tied to the payment of deposits or advance rentals.

Mrs. Mann

Is the Parliamentary Secretary aware that a £59 5s. television set becomes a £115 5s. set by a purchaser moving along a few doors and borrowing the deposit from a moneylender? Will the hon. Gentleman use some vigorous action to end this scandal?

Mr. Erroll

If it is what is called a free loan from a moneylender, there is no objection, of course, to such a loan being used. [HON. MEMBERS: "Free?"] If, however, it is tied to a hire-purchase transaction, it would require investigation. If the hon. Lady will give me details, I shall be glad to look into them.