HC Deb 17 April 1972 vol 835 cc27-8
27. Dr. Gilbert

asked the Secretary of State for Trade and Industry if it is still the Government's intention to legislate to implement the main recommendations of the Crowther Report on Consumer Credit.

Mr. John Davies

I have already accepted the need for major reform of the law relating to consumer credit, and preparations for this are in hand. I will make a statement of general intent as soon as I can.

Dr. Gilbert

While that reply is very welcome, may I ask my right hon. Friend to draw to the attention of his right hon. Friend the Chancellor of the Exchequer that one of the first principles of the Crowther Report was that all credit transactions should be treated on the same basis, and further draw to his attention the outrageous proposal in this year's Finance Bill that interest applicable to hire-purchase transactions with the ordinary public will not be exempt, while large amounts of interest on money borrowed for Stock Exchange speculation will be exempt?

Mr. Davies

I am sure that my right hon. Friend the Chancellor will take note of that comment, having regard, however, to the difficult context in which the decision had to be taken.

Mr. Alan Williams

Is the right hon. Gentleman aware that by a legal device companies such as Alpha Home Improvements Limited are denying housewives the protection that was intended under the Hire-Purchase Acts. Does he not realise that the need for action is now urgent, as the housewife is being treated very badly by unscrupulous doorstep spivs?

Mr. Davies

Yes, I have had this drawn to my attention. One of the purposes that the Crowther Report sought to serve was to ensure that all such arrangements as the hon. Gentleman mentioned should be subject to the same degree of control as are hire-purchase arrangements, in the sense that there must be a period during which revocation is open to the customer.