§ Dr, A. Thompsonasked the President of the Board of Trade whether he will introduce legislation to ensure that guarantors to hire-purchase agreements must sign such agreements in the presence of an executive of the firm 295W concerned, at an office of the firm, where the obligations incurred can be suitably explained.
§ Mr. MaudlingNo. The Hire-Purchase Act, 1938, provides that the owner shall not be entitled to enforce any contract of guarantee unless the provisions of the Act have been complied with. These include a requirement that the cash price of the article, the terms of the agreement, and the restriction of the owner's right to recover the goods is contained in a note or memorandum to be signed by the hirer and by or on behalf of all other parties to the agreement.
§ Dr. A. Thompsonasked the President of the Board of Trade whether he will take steps to require hire-purchase firms to devise a code of practice by which the credit-worthiness of clients can be ascertained by credit cards or other means before agreements are entered into, thereby preventing the incurring of excessive debts by clients who do not fully understand the obligations involved.
§ Mr. MaudlingNo. This proposal would mean a serious abridgement of the freedom of credit-seekers and credit-givers. It would involve far-reaching legislation which might well be very difficult to enforce.