HL Deb 06 July 1964 vol 259 cc825-6

Page 3, line 35, leave out from ("which") to first ("the") in line 38 and insert ("on being signed as mentioned in section 2(2)(a) or section 3(2)(a) of the principal Act,—

  1. (a) constitutes a hire-purchase agreement to which that Act applies, or
  2. (b) constitutes a credit-sale agreement to which that Act applies under which the total purchase price exceeds £30,").

3.14 p.m.

LORD DRUMALBYN

My Lords, this Amendment raises two issues. First, there is a drafting point, which arises also on Amendments Nos. 104, 108, 109, 112, 121 and 122. Clause 3(4) empowers the Board of Trade to make regulations about the space in which the hirer's or buyer's signature is to be inserted in a hire-purchase or credit-sale Agreement. Amendment No. 9 will ensure that the regulations will apply in the case where the document, at the time it is signed by the hirer or buyer, is only an offer to enter into an agreement and not yet an actual agreement. The six consequential Amendments make the same provision in relation to Scotland.

The second issue raised by Amendment No. 9 also arises on Amendments Nos. 12, 13, 54, 55, 58, 72, 107, 115, 116, 120, 125, 118 and 140. It concerns the figure of £30 which appears in the last line of Amendment No. 9. When your Lordships considered the Bill the figure of £20 appeared, in relation to credit-sale agreements, in two contexts. First, there are the existing provisions of the 1938 Act, concerning documentation and so on, which apply, in the case of credit-sale Agreements if the total purchase price exceeds £5. The Bill provided for the raising of this figure to £20, to take some account of the change in the value of money since 1938.

Secondly, there were the "cooling-off" provisions. Here, in accordance with the recommendation of the Molony Committee, the Bill provided that the provisions should apply to credit-sale agreements where the total purchase price exceeded £20 When the Bill was in Committee in another place, a proposal to raise the figure from £20 to £30 was made and fully debated. Any monetary limit of this kind is, in the nature of things, arbitrary, and a matter of judgment. On the one hand, there is the need to protect the consumer from sharp practice; on the other hand, excessive interference with the normal trade practice is to the advantage of neither the trader nor the customer. The Government spokesman advised the rention of the figure of £20, but the higher figure of £30 was supported from both sides and, on a vote, was accepted. The Government felt that in a matter of this kind they should abide by the view expressed by the majority, and accordingly these Amendments change the figure of £20 to £30 in each place where it occurs. I beg to move that this House doth agree with the Commons in Amendment No. 9.

Moved, That this House both agree with the Commons in the said Amendment.—(Lord Drumalbyn.)

On Question, Motion agreed to.