HC Deb 25 March 1970 vol 798 cc1412-3
14. Mr. Blaker

asked the President of the Board of Trade whether he will take steps to bring check trading within the legislation governing the control of hire-purchase and of hiring.

34. Mr. Barnett

asked the President of the Board of Trade if he will introduce further legislation on consumer credit protection; and if he will make a statement.

Mrs. Gwyneth Dunwoody

I think we should first await the report of the Crowther Committee.

Mr. Blaker

Is the hon. Lady aware that with the present severity of the hire-purchase controls the practice of check trading is growing notwithstanding the Chancellor's appeal for restraint which he made in December, 1967, and that this is causing great difficulty to many retailers? If we are to have such laws, ought they not to be applied fairly to all?

Mrs. Dunwoody

I have some sympathy with the hon. Gentleman's point of view. There is no doubt that old established traders who do not go in for this form of trading are suffering and that it is used as a means of evading hire-purchase controls. This is something of which we are aware. As soon as we have the Report of the Crowther Committee, we will study how best we may put its views into operation.

Mr. Barnett

Will my hon. Friend ensure that special attention is given to the disgraceful racket of second mortgages, particularly among the type of small finance company which takes advantage of young couples who, for instance, need to borrow a deposit towards buying a house and who are charged extortionate rates which are frequently obscured by all sorts of means so that people do not really know what sort of rate they are paying?

Mrs. Dunwoody

I realise that particularly young couples, when under enormous pressure to find accommodation, will occasionally enter what are unsatisfactory agreements. I hope that people will take care before signing these agreements. I must say that we are keeping a close watch on this type of development.

15. Mr. Hall-Davis

asked the President of the Board of Trade when he expects to receive the Report of the Crowther Committee on Consumer Credit.

Mr. Mason

Within the next six months.

Mr. Hall-Davis

Has the committee commissioned any special studies of check trading or other matters within its terms of reference? If so, will those studies be published in advance of the committee's report?

Mr. Mason

I do not think that there will be any studies published in advance of the report but the committee will be taking into consideration the problem of check trading.