HC Deb 25 July 1977 vol 936 cc21-2
21. Dr. McDonald

asked the Secretary of State for Prices and Consumer Protection how long he expects the Monopolies Commission to take to report on credit cards.

Mr. John Fraser

This reference, which was made by the Director General of Fair Trading on 23rd June, requires the Commission to report within 18 months.

Dr. McDonald

I thank my hon. Friend for that answer, but will he not consider ensuring that the Monopolies Commission looks at the rate of interest charged to credit card holders, which is currently 26.82 per cent., or does he think that the publicity given to the real rate of interest, following the extension of the Consumer Credit Act, will be sufficient to discourage potential customers?

Mr. Fraser

I think it is probably within the terms of reference of the Monopolies Commission to look at the rate of interest being charged. I suppose it is the hope of all of us that, following the very welcome reduction in interest rates brought about by the Government, the credit card companies might follow that Government example.

Mr. Michael Morris

Is it the Government's policy that the Monopolies Commission should be encouraged to look at foreign-owned credit cards as well as at our own domestic credit cards?

Mr. Fraser

I am not certain, but I rather believe that the reference would include those companies as well.