HC Deb 03 March 1977 vol 927 cc312-3W
Mr. McCrindle

asked the Secretary of State for Prices and Consumer Protection (1) if he will seek to amend Section 155 of the Consumer Credit Act prohibiting the charging of a fee by a credit broker until agreement in principle on a loan has been obtained;

(2) if he will seek to amend Section 155 of the Consumer Credit Act prohibing the charging of more than one-half of the credit broker's fee until such time as the borrower has entered into a binding agreement;

(3) if he will seek to extend Section 155 of the Consumer Credit Act so that an agreed fee of not more than half the total fee agreed shall be payable to the credit broker if the facilities as required are obtained but are not taken up by the borrower.

Mr. John Fraser

I have in mind no such amendment which would require legislation; it would appear premature to come to conclusions on the workings of the Act in advance of its further implementation. In particular, Section 155 will only become fully effective in the near future. The Director General of Fair Trading is responsible for keeping under review the working of the Act. If experience shows that amendment is needed he will, no doubt, advise me in accordance with his statutory duty.

Mr. McCrindle

asked the Secretary of State for Prices and Consumer Protection when he expects to introduce regulations under the Consumer Credit Act to curb doorstep canvassing of loan facilities; what form they will take; and what types of soliciting will remain legal.

Mr. John Fraser

The canvassing off trade premises of the services of a credit broker are already illegal under Section 154 of the Act. As licensing is gradually introduced, the canvassing off trade premises of debtor-creditor-supplier agreements will only be allowed by a special term in the licence. I hope to make effective later this year, to coincide with the introduction of licensing for creditors, the provisions making it illegal to canvass off trade premises debtor-creditor agreements except where the person solicited has requested a visit in writing or, in limited circumstances, the Director General of Fair Trading has determined that such soliciting may take place.