Hire Purchase (Hansard, 15 December 1959)

§ 27. Mr. Malcolm MacPherson
asked the Secretary of State for Scotland, in view of the present difficulty of ascertaining whether persons entering upon hire-purchase negotiations are bona fide purchasers, whether he will introduce legislation to clarify the situation.

§ Mr. N. Macpherson
My right hon. Friend has had no representations from hire-purchase firms about difficulty in ascertaining whether persons entering on hire-purchase negotiations with them are bona fide purchasers. If the hon. Member has in mind the sale of goods on which hire-purchase instalments are outstanding, it is for the buyer to satisfy himself that the vendor has title to sell, and my right hon. Friend does not see how the buyer could be helped by legislation, although he would be very glad to consider any suggestion that the hon. Member cares to make.

§ Mr. MacPherson
Does the hon. Gentleman realise that, while the great mass of hire-purchase transactions take place on a perfectly bona fide basis, it is just too easy for a purchaser, or for a dealer for that matter, to carry out crooked practices? In view of the fact that my information, from responsible professional sources in my constituency, is to the effect that frauds of this kind are quite frequent, and involve considerable sums of money in regard to motor car purchases, will the hon. Gentleman take the initiative in making inquiries instead of waiting for complaints to be received by him? Will he ask the firms concerned or the legal profession what information they have?

§ Mr. Macpherson
The hon. Member has done a public service in bringing this matter to our attention, and I will certainly consider most carefully what he said. I do not think that he expects me to give a firm answer now.

§ Mr. Lawson
In view of the fact that a large number of what are purported to be hire-purchase agreements, or deals, are carried out under what is called a personal credit scheme, and in view of the fact that there is some doubt whether this personal credit scheme is legal or illegal, will the Minister take steps to see that no one is penalised at this time for having carried out deals under the personal credit scheme? May we be assured that until the legality of this scheme is settled, no one will be penalised?

§ Mr. Macpherson
That is an entirely different question. Personal credit schemes are not hire-purchase schemes.