§ 4. Mr David Mitchellasked the Secretary of State for Prices and Consumer Protection whether he will issue a more simple guide to the regulations made under the Consumer Credit Act 1974.
§ The Minster of State, Department of Prices and Consumer Protection (Mr. John Fraser)Section 4 of the Consumer Credit Act places on the Director General of Fair Trading the responsibility of publishing information and advice about the Act. I am therefore asking the Director General to write to the hon. Member.
§ Mr. MitchellIs the hon. Gentleman aware that small business men find these regulations so complex that senior civil servants have been attending courses—costing £50 each—to explain them? Will he arrange for the publication of a simple explanation of these regulations at a low cost which small business men can understand and afford to obtain?
§ Mr. FraserEvery time that I hear the hon. Gentleman asking a question, I feel that he underrates the intelligence of small business men. The Director General has published a series of leaflets about the Consumer Credit Act, which vary in complexity to suit a range of audiences. I am sure that he will do his best to make the Act clear and well understood to both small and large traders.
§ Mr. Anthony GrantIs the hon. Gentleman aware that many small firms have had to take quite expensive legal advice to find out what the regulations mean and whether they should register under the Act? In view of the appalling burden on small firms, particularly because of the current minimum lending rate, do the Government not feel an obligation to minimise the administrative work of these firms?
§ Mr. FraserThere is a need to minimise the administrative work of small traders and others. I have looked at the licensing arrangements, and two forms that it was proposed that applicants should complete have now been dispensed with. I shall keep in mind the need to make these matters as clear as possible. Further regulations have to be made affecting particularly small traders doing credit transactions.