§ 30. Mrs. Ann Taylorasked the Secretary of State for Prices and Consumer Protection what are her plans for the implementation of the Consumer Credit Act.
§ Mr. John FraserThe licensing programme started in February of this year and is expected to be completed in two years. This summer we hope to make effective the extortionate credit bargain and credit reference agency provisions. Later this year we hope to make the provisions relating to the seeking of business effective and then to complete the remainder of the implementation over20W roughly the same period as the licensing programme.
§ 33. Mr. Pavittasked the Secretary of State for Prices and Consumer Protection if she will list in the Official Report the titles of statutory instruments still to be laid to ensure the full activation of the Consumer Credit Act and her estimate of the approximate month in which they will be published.
§ Mr. John FraserThe titles of the various statutory instruments still to be made will depend upon the exact scope of each, which can only be determined at at later stage of drafting. We hope to complete implementation of the Act in the next two years, but in view of the need for full and complete consultation it is impossible to give any precise dates.
§ Mr. Pavittasked the Secretary of State for Prices and Consumer Protection how many documents will need to be issued to borrowers by land mortgage to comply with the provisions of the Consumer Credit Act.
§ Mr. John FraserMuch will depend on the way in which creditors choose to conduct their business. In a case where the creditor signs the agreement first, the basic requirement is for an advance copy of the agreement to be given to the debtor seven days before the signature copy is sent to him, of which he must also be sent a copy. These provisions do not apply where the loan is for house purchase purposes, and it seems right that consumers should be given the fullest opportunity to appreciate that in taking out a loan for other purposes secured in this way they are putting their home at risk.
§ Mr. Pavittasked the Secretary of State for Prices and Consumer Protection if she will take steps to make the provisions of the Consumer Credit Act easily understood by both lenders and borrowers by issuing guides in simple language to interpret the legal complications within the Act.
§ Mr. John FraserSection 4 of the Consumer Credit Act places an obligation on the Director General of Fair Trading to give information and advice as appropriate about the operation of the Act and other related matters. Some 21W material has already been issued, and suitable material will be issued later as the rest of the Act is made effective.